Why Bell Potter is bullish on this ASX All Ords stock

If you have room in your portfolio for some new additions, then the ASX All Ords stock in this article could be worth considering.

That’s because Bell Potter is bullish and is predicting strong returns for investors over the next 12 months.

Which ASX All Ords stock?

The stock in question is IPD Group Ltd (ASX: IPG). It is a leading Australian distributor of electrical equipment and industrial digital technologies operating nine distribution centres and servicing 4,200+ customers nationally.

Bell Potter notes that the company supplies products used in buildings, infrastructure, and process sectors that help to reduce energy use and reliance on the transmission network.

Bell Potter notes that the ASX All Ords stock delivered a half-year result that was slightly ahead of expectations. It said:

Revenue of $193m (BPe $188m), up 9% YoY, with 11% YoY growth delivered at the core IPD business, 2% YoY at CMI and 55% at Ex Engineering. Pleasingly, Data Centre revenue was 16% higher YoY to $32.8m (growth would have been 25% if a large order did not slip into early CY26). GM of 33.3% was broadly in line with our estimate, down from 35.2% in the PcP, as a greater volume of competitively won projects were delivered.

Opex as a % of revenue of 20.2% declined on the PcP (22.1%) and was in line with our estimate. As a result, EBITDA margin of 13.2% was consistent with our forecast and the PcP. Underlying EBITDA of $25.4m and EBIT of $21.7m were 2% ahead of expectations and were above the top-end of the company’s 1H FY26 guidance ranges. Underlying NPAT of $14.4m (BPe $14.3m) grew 8% YoY. A fully franked interim dividend of 6.8cps was declared (BPe 6.7cps).

The even better news is that its outlook commentary was positive and the second half has started strongly. The broker adds:

FY26 outlook comments include: 1) The strong momentum observed across the Group in 1H continued through to Feb’26, including at the recently acquired Platinum Cables business; and 2) IPG enters 2H with a healthy orderbook and a strong qualified opportunity pipeline to support sustainable earnings growth in the short-term.

Potential market-beating returns

According to the note, Bell Potter has reaffirmed its buy rating and $5.30 price target on the ASX All Ords stock.

Based on its current share price of $4.65, this implies potential upside of 14% for investors over the next 12 months.

In addition, the broker is expecting a 3.2% dividend yield over the period, which boosts the total potential return beyond 17%.

Commenting on its positive view of the stock, the broker said:

IPG is well positioned to capitalise on the Commercial construction market recovery currently underway and ongoing positive momentum in Data Centre and Infrastructure construction activity. IPG represents a relatively undervalued Industrials investment compared with the ASX300 Industrials index. Our $5.30/sh Target Price implies a NTM PE of 16.1x, a 22% discount to the Industrial Services peer group despite sharing a consistent NTM EPS growth outlook (16.6% IPG vs 17.5% peer group).

The post Why Bell Potter is bullish on this ASX All Ords stock appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ipd Group. The Motley Fool Australia has positions in and has recommended Ipd Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.