Analysis of Automotive Holding Group Limited based on Fundamental Parameters

Contents
Executive Summary...............................................................................................................................2
INTRODUCTION.....................................................................................................................................3
Macroeconomic Factors:.......................................................................................................................3
Competitors & Industry.........................................................................................................................3
Analysis..................................................................................................................................................4
Competitor Margin Analysis..................................................................................................................4
Conclusion.............................................................................................................................................5
RESOURCES B:.................................................................................................................................5

Executive Summary
The report is intend to analyse a company listed on Australian Stock Exchange i.e
Automotive Holding Limited based on fundamental parameter considering the current annual
report and annual report of past three years. The tool used for analyzing is the common size
financial statement and ratio analysis.
Post analyzing the company on various parameter including market share, profitability,
liquidity, non-financial parameters is that the company is not suitable for investment as there
is downfall in the results on year on year basis
INTRODUCTION
Automotive Holding Groups Limited (AHGL), is a holding company of various business.
The company is engaged in diversified business. AHGL is an Australasia based company.
The company majorly deals in automotive retailing.
The other area of focus of the company includes (a) refrigeration and logistic, automotive
retailing and other ancillary activities in relation to logistics. The company has near about
190 franchises of motor vehicles which are spread over 110 different dealership locations
with business in both Australia and New Zealand. (Reuters.com, 2019)
Macroeconomic Factors:
In terms of Trade Economics report, Australian economy is performing well and annual
growth rate of Gross Domestic Product has been estimated at 2.3% along with the Gross
Domestic Product per capita of AUD 55,925.93. (Knoema, 2018) Thus, the same is a good
sign for the industry.
Competitors & Industry
The latest report published by Aca Research on January, 2018 shows that the automotive
industry has undergone a decline on year on year mainly due to reduction in demand and
introduction of new legislation by Australian Government. In addition to above, demand for
Australian made vehicle have shown a decline of 2% of local sales. (Northcentral University,
2019) The details of the major competitors of the company has been depicted here-in-below:.
Sl.
No. Particular Revenue % of Market
share
1 Motor Cycle Holdings Limited 299.52 2.09%
2 Cash Converters International
Unlimited 260.35 1.81%
3 Nick Scali Limited 250.77 1.75%
4 Automotive Holding Group Limited 6470 45.09%
5 Lovisa Holding Limited 217.01 1.51%
6 AP Eagers Limited 4120 28.71%
7 Super Retail Group Limited 2570 17.91%
8 Viva Energy Reit Limited 160.93 1.12%