SDI.L

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Looking for an interesting small cap to research?

$SDI.L if the following interest you:

• Incredible organic growth rates

• Minimal analyst coverage

• Super high quality

• Tiny market cap

• Illiquid

Here's some key info to get you started

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What They Do

SDI Group is a serial acquirer that specializes in two niche industries: digital imaging and sensors/control.

Both segments have massive TAMs and are of high quality.

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](https://twitter.com/IrrationalMrkts/status/1618307800844705792/photo/1)

M&A

Since 2014 they've averaged 1-4 acquisitions per year.

They look for:

• 4-6x EBIT

• Autonomy

• Provide capital for organic growth levers

• Focus on medium to long-term strategies

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Organic Growth

Organic growth has been in the high teens/low 20's for the past 5 years.

The business has rising returns on invested capital (currently over 20%).

They also have moved away from diluting shareholders to fund acquisitions.

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Capital Allocation

The business has rising returns on invested capital (currently over 20%).

They also have moved away from diluting shareholders to fund acquisitions.

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For a much more in-depth look at this business check out my Substack (This article is paywalled with a free preview):