Added to YB: 2026-04-23
Pitch date: 2026-04-21
RDY.AX [bullish]
ReadyTech Holdings Limited
-0.71%
current return
Author Info
HD Capital Partners is a Sydney based fund manager specialising in smaller listed companies. Sign up for the newsletter.
Company Info
ReadyTech Holdings Limited provides technology-based solutions in Australia and New Zealand, the United Kingdom, and the United States of America.
Market Cap
AUD 150.1M
Pitch Price
AUD 1.40
Price Target
4.50 (+224%)
Dividend
N/A
EV/EBITDA
35.80
P/E
121.77
EV/Sales
1.57
Sector
Software
Category
value
Ready, Tech, Go - finding value in the SaaS carnage
RDY.AX: VMS provider (HR, education, local gov) w/ $100M+ ARR, 5000+ customers, 90%+ gross retention. Trading 1.4x EV/rev vs 3x median ASX tech & 4.55x recent PE comps. Enterprise push into TAFEs (BKI win, VIC tender pending) depressed margins to 10-15% vs historical 25-30%. Three catalysts: 1) pipeline conversion validates Enterprise strategy, 2) PE interest (Pemba 32% stake, PEP bid $4.50 in 2022), 3) AI-driven cost-outs restore margins. Valuation $2.50-$4.50 PT (120-300% upside) on sum-of-parts basis. Risk: Enterprise strategy fails, AI disruption, margin recovery slower than expected.
Read full article (18 min)