Original-Research: INDUS Holding AG (von NuWays AG): HOLD

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Original-Research: INDUS Holding AG - from NuWays AG

08.10.2026 / 09:00 CET/CEST

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Classification of NuWays AG to INDUS Holding AG

Company Name: INDUS Holding AG

ISIN: DE0006200108

Reason for the research: Update

Recommendation: HOLD

Target price: EUR 41

Target price on sight of: 12 months

Last rating change:

Analyst: Sarah Hellemann

Conference feedback: Focus on tungsten, growth drivers and M&A

We hosted INDUS CFO and IR at our annual Paris conference. With the tungsten

situation under control, the company should re-focus on its M&A strategy. At

the same time Infrastructure and Engineering should continue to see

operational improvements. In detail:

* Tungsten carbide special situation. Mind you, the price of tungsten

carbide had risen significantly since early 2025 following Chinese

export controls, introduced as a countermeasure to the US tariffs. BETEK

has managed the resulting price increases successfully, driving a

significant uplift in Materials Solutions' profitability (windfall

profits). The segment reported an adj. EBITA margin of 22.4% in H1 26,

up 14.3pp and the segments' adj. EBITA jumped to EUR 84.5m compared to EUR

23.1m in H1 25. This was mainly driven by pricing but also to some

extent also by higher volumes.

* Looking ahead, uncertainty around the development of tungsten carbide

spot prices remains. Management views prices to have peaked for now.

While the material remains in high demand for defence purposes and we

consider a rapid price decline in FY27e rather unlikely. Yet, sharply

falling prices could expose the company to margin risk (current

inventory based on currently high prices). A gradual decline should be

manageable and lead to normalizing margins, in our view. Importantly,

BETEK has proven itself a reliable supplier for its customers and hence

looks well positioned to retain its raised market shares.

* Favorable growth backdrop for Engineering and Infrastructure. With

German and European GDP growth accelerating, the business climate

improving and positive German construction output development visible

(Trading Economics), the baseline for economic development has been

slowly improving in recent months. This combined with order intake

growth in H1 26 and solid orderbooks in both segments (Engineering

book-to-bill-ratio at 1.22x and Infrastructure book-to-bill-ratio at

1.14x at H1 26) supports our expectation of continued strong growth in

H2 26.

* Further M&A activity anticipated. Management confirmed our view of at

least one more acquisition in FY26e. This should involve either bolt-on

acquisitions to its existing technology clusters or something sizeable

enough to open up a new technology cluster. To recap, INDUS already

added two companies to its Engineering segment in H1. Due to the

uncertainty around Working Capital requirements in BETEK and the

holding's financial backing committed, the deal flow was temporarily

decelerated. With the situation under control, we view the strategic

focus returning to acquisitions.

Down to HOLD, PT unchanged at EUR 41. Following a share price rally of c. 60%

since July, INDUS now trades in line with our price target, which is based

on FY27e FCF yield. The downgrade is purely valuation-driven, and our

conviction in the investment case remains intact. Further upside would

require developments beyond our current estimates, namely (1) an

acceleration of M&A activity, (2) margin gains from internal optimization,

(3) a further sharp rise in tungsten prices and (4) a stronger-than-expected

improvement in the macroeconomic environment.

You can download the research here:

https://nwr.eqs-cockpit.com/fncls2.ssx?fn=redirect&u=b43fcd31e0bc3a416febc8a50b864b5d

For additional information visit our website:

https://www.nuways-ag.com/research

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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2412216 08.10.2026 CET/CEST

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