Stock of the day: Findi

(AI video summary)

This video was created on 3 July 2025 for IG audiences by ausbiz.

Findi's IPO and growth outlook

Findi is positioned as a compelling investment, driven by its recent selection of lead managers for an anticipated initial public offering (IPO). This event is anticipated to catalyse the company's growth, backed by impressive revenue expansion and a robust free cash flow. Findi's scalable business model and strengthened balance sheet, coupled with revenues around $75.5 million, enhance its investor appeal.

As the IPO, projected for the September/October period, nears, expectations are high for a revaluation aligning with comparable companies on the Indian exchange, potentially boosting the valuation from $700 to $900 million.

Trading below $4, Findi offers an attractive entry point, with historical rallies on key announcements indicating further upside potential. Although there are short-term risks related to obtaining necessary licences from the Reserve Bank of India (RBI), Findi's track record suggests confidence in its continued progress.

Eroad's strategic position in fleet management

Eroad, a New Zealand-based company, operates in the fleet management sector through a software-as-a-service (SaaS) model, catering to large logistics operators. The company generates 95% of its revenue on a recurring basis and maintains high gross margins.

After facing financial pressures in financial years (FY) 2022 and 2023, Eroad has shifted focus to profitability. It recently reported $20 million in operating profit and holds a market capitalisation of approximately $260 million. Trading at 13 to 14 times its cash profit, Eroad may be undervalued.

Despite a dual listing in New Zealand and Australia, Eroad remains under the radar. However, parallels with turnaround cases such as Bravura Solutions, Gentrack and Catapult suggest it could be re-rated as its recovery strengthens.