There are 2 updates to Nordic.
9MFY2021 Updates:
1) 9MFY2021 updates: EPS 9M is 2.8 cts, Trailing PE ratio is 11x as of 31st Dec 2021.
2) Net profit for 9M is 11 million vs last FY 9M of 1.9 million.
Nordic has shown great recovery from FY2020.
Hopefully, this is will continue moving forward.
Takeover Starburst
If the takeover is successful, base on perfoma HY2021, EPS for Nordic will be 3.9cts for 1HYFY2021.
Trailing PE will be 5.26x for Nordic.
But not all things are rosy, Nordic will end up with Gearing of 0.66x or $52 million net borrowings from a net cash of $11 million. If synergy can be strike between starburst and nordic, this will be a great acquisition as $0.238 is just 4x trailing PE.
The past acquisition of Multiheight in 2011 has effectively reduced industry specific risk and , 18% supported Nordic's consistent revenue growth. The acquisitions of Austin Energy in 2015 and Ensure Engineering in 2017 and Envipure in 2019 have further diversified Nordic's revenue stream and stimulated revenue growth. Starburst might jolly be Nordic's rapid growth engine moving forward.
With its past track record, I will place my bet on Nordic.
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