Automobiles and parts - Mcap: £1,260m - Price: 90p - Update
Dowlais Group (DWL)
Motoring forward
Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.
Analyst
David Larkam
Industrials analyst
industrials@edisongroup.com

