Mad Paws (ASX:MPA) looks like it is immune to inflation, so why are investors still deaf to its story?
Nick Sundich, June 27, 2023
What’s not to like about Mad Paws (ASX:MPA)? It is one of the few ASX stocks with exposure to the pet market and is seemingly immune to inflation – at least, if today’s trading update is anything to go by.
So, why is it down over 50% since its IPO and hardly budged today?
SIGN UP FOR THE STOCKS DOWN UNDER NEWSLETTER NOW!
Mad Paws releases a solid trading update
As FY23 draws to a close, Mad Paws released a trading update. It is expecting $24.5-$24.5m which would be up 146% on a reported basis and up 60% on a pro forma basis.
Whilst so many other consumer facing stocks are reporting downgrades left right and centre as consumers cut back their spending, Mad Paws is going in the opposite direction.
So why are investors seemingly tone deaf to this company? It is down over 50% since its IPO.

Mad Paws (ASX:MPA) share price chart, log scale (Source: TradingView)
Top line good, but the bottom line…not so much
Without giving specific details, Mad Paws boasted that it had seen continued improvement in EBITDA margins and was on track for EBITDA positivity in Q1 of FY24.
Investors seemingly are in the mindset of Charlie Munger.
Not a word was said about (proper) profitability.
Still, Mad Paws told shareholders there was a lot to look forward to. In particular, it boasted about plans to expand its Pet Chemist range and a new website. When (or indeed if) it will make any difference to the bottom line is anyone’s guess.
Stocks Down Under Concierge is here to help you pick winning stocks!
The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector!
Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target, a stop loss level in order to maximise total returns and (of course) we tell you when to sell. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.
Our performance is well ahead of the ASX200 and All Ords.
You can try out Concierge for 3 months … for FREE.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
There’s no credit card needed – the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Top 5 Australian Shares to Buy for Long-Term
Investing in the stock market is not just about quick wins; it’s about finding Australian shares that will grow steadily…
Top 10 Australian Value Stocks to Buy Right Now
In a world where stock markets fluctuate with the global economy, investors need to find value stocks—companies that are undervalued…
Xero (ASX:XRO) delivered another stellar result in FY25, but is there further upside? Here are 3 reasons why we think it does
Xero (ASX:XRO) is one of the ASX’s best-performing tech stocks over the last decade, offering accounting software helping SMEs do…