Diploma’s Strong Financial Performance and Positive Outlook Justify Buy Rating

Sam Dindol, an analyst from Stifel Nicolaus, maintained the Buy rating on Diploma (DPLM – Research Report). The associated price target remains the same with p4,750.00.

Sam Dindol has given his Buy rating due to a combination of factors that highlight Diploma’s strong financial performance and positive outlook. The company has reported impressive interim results, with a 14% increase in revenue and a 25% rise in adjusted operating profit, surpassing market expectations. This growth is driven by robust performance in the Controls sector and solid contributions from Life Sciences and Seals.
Additionally, Diploma maintains a healthy balance sheet with reduced leverage, indicating financial stability. The company has also raised its guidance for FY25, expecting higher organic growth and improved operating margins. These factors, along with a promising acquisition pipeline and a stock trading at a slight discount to its historical average, support the Buy recommendation, as further strong execution is anticipated.