Integrated Diagnostics Holdings PLC (LSE: IDHC)     

Integrated Diagnostics Holdings PLC (LSE: IDHC) is an integrated diagnostics services provider in Egypt. The Company operates in three geographic areas: Egypt, Sudan and Jordan. The Company provides over 1,000 diagnostic services ranging from basic tests to molecular tests for hepatitis and specialized deoxyribonucleic acid (DNA) tests to patients and operates approximately 310 branches. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Investment Rationale – Sell at USD 0.48

• Resistance near Current levels: IDHC’s stock price crossed the Resistance (R1) stated in the previous report on 05 October 2023, and might witness some sell-off from the current levels. Considering the market conditions and the price action, it is prudent to exit the stock, as the prices might pull back from these levels.
• Declining Financials: The Company’s top-line business has witnessed a marginal decline of around 4% YoY and net profit has demonstrated a reduction of 52% YoY during H1 FY23.
• Reduction in Cash Balance: The Cash balance dropped around 18% YoY during H1 FY23.
• Expensive Valuation: The stock of IDHC is currently offered at higher EV/EBITDA and Price/Earnings when compared with the respective median of the HealthCare industry.

Share Price Chart  

Conclusion

Based on the notional gains, macroeconomic challenges, and price action stance, a "SELL" recommendation on Integrated Diagnostics Holdings PLC (LSE: IDHC) has been given at the current market price of USD 0.48 (as of 16 October 2023, 08:18 AM GMT+1).

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 16 October 2023. 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 scenario.

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.’

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