Stock Discussion – Metcash Limited (MTS)

The pause in RBA interest rate rises in April 2023 was short-lived. The higher interest rate environment is being felt in segments of the economy. For some, cost-of-living strains are flowing through to the Consumer Discretionary sector. Several stocks are getting caught up in the negativity. In the mid-cap and small-cap segment of the market, we consider Metcash Limited to be an interesting investment opportunity. It is owned by both BKI Investment Company and the Contact Australian Ex-50 Fund. This Consumer Staples business is trading at a compelling multiple compared to peers and seems to have been caught up in the selloff in Discretionary names. In this Contact Insights piece, we discuss why we consider MTS to be a Quality Company at a (more than) Reasonable Price.

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