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TAKE PROFITS Halma (HLMA)

Close Halma at market (4,439p)

Halma has been exactly what you want from a high-quality compounder. Both tranches have delivered strong returns, with the first up 101.4% and the second up 78.3%, driven by consistent execution, steady organic growth and a disciplined acquisition strategy. The business continues to generate attractive returns on capital, margins remain robust near 20% and cash flow conversion is solid, supporting a steadily growing dividend. This is a company that rarely disappoints operationally, and that reliability has been reflected in persistent upward momentum, with the shares now trading at all-time highs.

The challenge, as is often the case with businesses of this quality, is valuation. Halma is now trading on a forward PE of over 35x, with a premium already pricing in continued double-digit growth and flawless execution. Momentum remains strong, but expectations are equally elevated, leaving less room for upside surprises and increasing the risk of multiple compression if growth moderates. Taking profits here is not a reflection on the business, but a recognition that the market is already paying up for that quality. After a strong run across both entries, this feels like a sensible point to lock in gains and recycle capital into opportunities where the risk-reward is more favourable.

Tranche 1 Profit = 101.4% (excluding dividends)

Tranche 2 Profit = 78.3% (excluding dividends)

HLMA Daily Candle Chart