A look at a few stocks in the Industrial space - ALX, MND, ROO

  • January 14, 2020 09:00 PM AEDT
  • Team Kalkine
A look at a few stocks in the Industrial space - ALX, MND, ROO

Industrial Sector of Australia happens to be one of the leading sectors of Australia, which is helping the economy of the country to transition to greater heights. This sector includes those companies which are involved in the manufacturing of finished products, providing engineering services etc. As every sector, which runs according to the thumb rule of demand and supply, this sector also possesses a great impact on the overall economy. For an example, let suppose that there is no demand coming from the end consumer. This will lead to no production of finished products. In the below article, we will be looking at some of the companies, which operate in the same space.

Atlas Arteria

Atlas Arteria (ASX: ALX) is engaged in the operation and management of a portfolio of toll road assets. The company recently announced that €500 million of bonds has been successfully priced by APRR under its Euro Medium Term Note Programme.

The company added that the bonds possess a term of three years and would be maturing on 20th January 2023, which happens to a year in which APRR has no bonds maturing. The proceeds raised from the issuance would be utilised towards the refinancing of debt as well as for general corporate purposes. As per the key personnel of the company this transaction reflects the continued support from the Eurobond investors of the APRR business.

In another update, the company announced that parliament of France has approved the Finance Bill for 2020 and added that the new French corporate tax rate plan which would apply to APRR for taxable profits above €500k. The new tax plan is depicted by the below picture:

The company also added that the Finance Law also includes a hike on the specific tax payable by motorway companies, which is based on the number of kilometers travelled by users on their motorways. Also, APRR is considering its options with the French Government with respect to the compensation for this additional tax increase.

Also Read: Financial Story of five well known Industrial Stocks

At the close of trading day on 14th January 2020, the stock of ALX last traded at A$8.170 per share with an increase of 1.239% The stock delivered returns of 0.34% and 4.15% in the span of three months and six months, respectively.

Monadelphous Group Limited

Monadelphous Group Limited (ASX: MND) is involved in the provisioning of engineering services in Australia. The company recently announced that Commonwealth Bank of Australia has ceased to become a substantial holder in the company on 20th December 2019.

Recently, the company has noted that Mondium Pty Ltd has been awarded a major contract with Rio Tinto with the value amounting to around $400 million. The contract has been presented for the construction as well as design of the mine named as Western Turner Syncline Phase 2 in the Pilbara area, which is situated in WA.

Mondium Pty Ltd happens to be a joint venture (JV), wherein Monadelphous Group Limited (MND) holds 60% shareholding. Mondium Pty Ltd would perform all procurement, engineering and design as well as site construction works, associated with development of WTS2 including the process plant, non-process infrastructure as well as overland conveyor.

In addition, the work would start in Q1 FY20 and is anticipated to wrapped up in 2021. Mondium Pty Ltd would work closely with Rio Tinto in order to provide local employment as well as business opportunities in the region

In another update, the company announced that new construction and maintenance contracts in the resources and energy sectors has been secured by MND, which is having a combined value amounting to $110 million. In addition, the company has also secured a 3-year contract for the provision of general mechanical as well as maintenance services as part of scheduled turnaround of Incitec Pivot for its Queensland manufacturing facilities.

At the close of trading day on 14th January 2020, the stock of MND last traded at A$17.030 per share, down 1.218% compared to the previous close. The stock delivered returns of 14.78% and -7.01% in the span of three months and six months, respectively.

Roots Sustainable Agricultural Technologies Ltd

Roots Sustainable Agricultural Technologies Ltd (ASX: ROO) happens to be an agricultural technology company, which is having its focus on developing, producing, and commercialising precision agricultural technologies.

Changes in Top Management Team

In order to fuel growth in Cannabis Sector, the company has outlined following changes in its top management:

  • The company stated that it has appointed Mr. Boaz Wachtel on the role of CEO and Executive Chairman, which came into effect on 13th January 2020.
  • Sharon Devir has been appointed on the designation of executive director and business development.

Also, the company has inked a collaboration agreement with Seach Medical Group Ltd, which is a Tel Aviv Stock Exchange Listed medicinal cannabis producer for the research of the effect of patented Root Zone Temperature Optimization technology on cannabis crop of the company.

On the operational front, the company has continued to deliver remarkable technical results, reflecting the significant benefits of its root zone heating as well as cooling technology in mitigating external weather conditions on a number of crops and growing conditions. As at 30th September 2019, the cash balance of the company stood at US$298,000 and the company anticipates to cash burn rate would remain in accordance with expectations as ROO continues to invest in commercialising installations in a number of territories and sectors, and scale-up sales and marketing activity within the North American cannabis market

At the close of trading day on 14th January 2020, the stock of ROO last traded at A$0.051 per share, up 4.082% with respect to the previous close.


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