As seems usual, people seem to be focusing upon the wrong...

As seems usual, people seem to be focusing upon the wrong numbers. Overall growth of 20% with 2/3 of a heavily Covid affected half complete against a cycling a strong, Covid unaffected, H1FY20 is pretty good as far as I am concerned.

My back of the envelope calculations assume an 18% EBIT margin for FY21 off 500m in sales (20% growth on 197m from memory with Mocka on board FY20 ~250m in sales, and H2 is normally 52% compared to 48% H1), gives me an EBIT of 90m and NPAT of 50-60m, for a forward PE ~10. FY22 will have the withdrawal of Jobkeeper support + some economic recovery, particularly in stores + the supply chain initiatives, which should result in maintenance of margins and I expect some continued low hanging fruit top line growth with the current upsizing/expansion/Mocka AU strategy. In light of all of this, I can't see how the current valuation is warranted, whilst many vastly inferior businesses trade on ridiculous multiples, but hey, what do I know- just another mug retail punter!