Featured on Daily Sharechat as a GROWTH BUY at $2.75 in September 2011, Ausdrill (ASX: ASL) is now trading at $3.55, having hit a profit taking opportunity high of $4.25 last month.
And the shares still rate as a BUY after its recent correction, due to market conditions, and its strong first half result.
ASL delivered more growth in the first half result for the 6 months ending 31 December 2011 (1H). Profit increased 50% to $54.6 million on revenue growth of 23% to $512 million, resulting in a 1H earnings per share (EPS) result of 18c, up 30%.
This leaves ASL well on its way to achieving forecast EPS of 36c for the year to 30 June 2012 (FY12) leaving it trading on an undemanding pe ratio of 9.8x.
This is better than fair value for a company that is growing its profits so fast, and a FY13 EPS forecast of 40c means ASL is trading at just 8.9x.
ASL reports a continuing positive outlook for the mining sector in the years ahead, and with exposure to the Australian mining sector and a fast growing African mining sector, ASL looks poised for more growth in the years ahead.
Current pullback provides yet another buying opportunity.
About Ausdrill: Ausdrill provides mining services which include drill & blast, exploration, procurement & logistics, manufacturing, and telecommunications with operations in Australia, United Kingdom & Africa. Founded in Kalgoorlie in 1987, ASL listed in the ASX in 1994 and is today a vertically-integrated business consisting of 2 main divisions - Exploration and Drill & Blast.
Status: GROWTH BUY
ASL’s shares today traded at $3.55
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