INVL Technology: Undervalued, but with Growth Potential to Spare

INVL Technology, a closed-end investment company listed on the Nasdaq Vilnius stock exchange, had its 2023 financial results analyzed by Enlight Research. The report revealed that the company’s net asset value per share increased by 14% to EUR 3.61 due to the growth of its portfolio companies’ sales and EBIT during the year. Additionally, INVL Technology’s NAV discount reached a historic high of about 40%.

Enlight Research raised its base case fair value per share for INVL Technology to EUR 3.79 from EUR 3.34. The company provides equity research to private and institutional investors for free, encouraging them to use a variety of research sources to make informed investment decisions. Senior analysts at Enlight Research have significant experience in writing research reports.

The analysis commissioned by INVL Technology from Enlight Research is for informational purposes only and does not constitute investment research or an offer to buy or sell shares. Investors are responsible for making their own decisions regarding investments. INVL Technology manages NRD Cyber Security, Novian, and NRD Companies.

According to the report, the increase in net asset value per share was driven by the strong performance of INVL Technology’s portfolio companies, particularly NRD Cyber Security and Novian. These companies experienced significant growth in sales and earnings before interest, taxes, depreciation, and amortization (EBIT) during the year.

Enlight Research also noted that INVL Technology’s NAV discount reached a historic high of about 40%, indicating that investors are undervaluing the company’s assets relative to its book value. This could be due to factors such as market conditions or concerns about potential risks associated with investing in IT businesses.

Despite these challenges, Enlight Research raised its base case fair value per share for INVL Technology to EUR 3.79 from EUR 3.34, reflecting its belief that the company has significant growth potential and is undervalued relative to its peers in the IT sector.