Inflation Report - Two Stocks from the Energy & Consumer Sector – AET & ANG

This report is an updated version of the report published on 07 November 2025 at 10:55 AM, GMT

Section 1: Introduction

Overview & Key Concepts:

Inflation is the gradual loss in purchasing power, primarily due to an increase in the price levels of goods and services over a given period.

• Inflation: A continuous rise in the overall price level of goods and services, which diminishes the purchasing power of money.
• Deflation: A decline in the general price level, which raises the real value of money but can discourage spending and lower business earnings.
• Disinflation: A reduction in the rate at which prices are increasing prices still go up, but more slowly than before.
• Stagflation: An economic condition marked by slow growth, elevated unemployment, and high inflation occurring simultaneously, making policy responses difficult.

Drivers and Causes of Inflation:

• Demand-Pull Inflation: Occurs when demand for goods and services exceeds supply, leading to price increases.
• Cost-Push Inflation: Results from rising production costs, such as wages and raw materials, causing producers to raise prices.
• Built-In Inflation (Wage-Price Spiral): Happens when workers demand higher wages to cope with increased living costs, leading to further price hikes in a self-reinforcing cycle.

Inflation Data for UK - September 2025

• The UK’s Consumer Prices Index increased to 4.1% in September 2025 unchanged from August, according to the Office for National Statistics (ONS). This increase prompted the Bank of England to hold its interest rate at 4.00%, delaying any potential rate cuts. While the move has sparked cautious optimism in markets, a continued rise in inflation could further push back easing measures and weigh on investor sentiment.

Inflation Report Coverage:

• The inflation report underscores the uneven impact of inflation across sectors, with value-oriented and defensive areas—such as Energy, Materials, Consumer Staples, Healthcare, Utilities, select Financials, and REITs with inflation-linked leases—tending to perform better, while rate-sensitive sectors like Consumer Discretionary and high-growth Tech often lag.
• The report emphasizes companies with resilient business models, healthy financials, strong free cash flow, and consistent ROE, capable of passing on rising costs to customers to preserve margins. It aims to highlight stocks positioned to weather inflation through both capital appreciation and dividend income, reinforcing the value of diversified sector exposure.

Section 2: Company Overview 

Afentra PLC (LSE: AET) is an LSE listed AIM All- share index, an upstream oil and gas company focused on West Africa, aiming to optimize and expand a portfolio of producing fields, near-field developments, and short-cycle exploration opportunities. It holds a 30% non-operated interest in producing Block 3/05 and a 21.33% non-operated interest in adjacent Block 3/05A offshore Angola, plus a 40% non-operating stake in Block 23—a deepwater exploration license in the offshore Kwanza Basin covering about 5,000 km² with proven hydrocarbon potential.

Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology (Illustrative): Price/ Earnings Relative Valuation approach

5.2 Price Performance and Stock Recommendation

The stock has witnessed a downside of ~9.38% in 3 months and ~6.72% over the last 9 months. Moreover, stock is trading around the average 52-week high price of GBX 56.20 and 52-week low price of GBX 33.06.

5.3 One-Year Technical Price Chart

5.4 Technical Summary 

Section 2: Company Overview

Angling Direct PLC (LSE: ANG) is an LSE listed AIM All- share index, UK-based omni-channel retailer of fishing tackle and equipment. Its core activity is selling gear through its websites and physical stores, with an emphasis on customer service, expert advice, and maintaining comprehensive product lines covering a full range of angling equipment.

Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock. 

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology (Illustrative): Price/ Earnings Relative Valuation approach

5.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~16.48% in 3 months and ~30.86% over the last 6 months. Moreover, the stock is trading above the average 52-week high price of GBX 60.00 and 52-week low price of GBX 33.40.

5.3 One-Year Technical Price Chart 

5.4 Technical Summary 

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 07 November 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 6: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.