I am hunting for the vigorous share of growth or two for my personal pension (SIPP) and Melrose Industries (LSE: MRO) caught my attention. . FTSE 100 The shares increased by 12% per month, although they fell by 10% during the year. Is this a one -time reflection or the beginning of something bigger?

I barely told Melrose earlier, but her story seems incredibly familiar. Like Rolls-RoyceHe has fingers in both civil and defense cakes.

The engine division provides all vast jet creators and earns just over half of the revenues from the Juicy engine service. This is an opposition to a more cyclical sales market, softening a blow when recent orders are ponderous. It also builds rapidly developing activities in the field of repairing parts.

FTSE 100 Recovery Play?

The arm of the Melrose structure is formed by fuselage and electrical systems for all known aircraft, with decent exposure to both the US and European defense. Which of course is a good area, because Europe contributes to Russia, and the confusion in the Middle East lasts.

In April, Melrose said that the revenues from engines increased by 9% in Q1 and the structures increased by 4%. Revenues from the group increased by 6% year -on -year. It’s a decent clip. Operational profit appeared much before last year, and management stated that he followed the level of cash and debt as expected. Tariff threats in the US will cause interference, but they will look survival.

The management also set several powerful growth goals at 2029. This included revenues of $ 5 billion, profit of over 1.2 billion pounds and a margin of 24%, compared to 15.6% today. It also chases free cash flows of 600 million GBP. It would be quite maneuverable from a drainage worth 74 million pounds this year, caused by restructuring and older cleansing.

Actions are flying

I am worried about the net debt, which in 2024 in 2024 in 2024. In 2024 in 2026 it was doubled to £ 1.32 billion. This can be more challenging if inflation and interest rates start climbing and conditions on the credit market.

Snarl-ups of the supply chain have recently hindered operations and did not leave. For this reason, the management retained its 2025 guidelines “cautious”.

The valuation looks tempting on paper. The price indicator for profit is only 14.2, much below Rolls-Royce on almost 44 and FTSE 100 BAE systems at 28. However, there is no guarantee that will close. Civil Aerospace is not effortless. Just bad weather, volcano, war or global slowdown, and flights justify. Investors know how rapid revenues can evaporate.

The effective dividend of 1.15% looks modest, but the dividend for the action increased by 33% in 2022, 115% in 2023, and another 20% this year to 6 shares. However, many of them were to restore pandemic damage. In 2018, the dividend was 4.6 pence.

Low valuation, high hopes

Analysts’ forecasts suggest that shares may enhance by another 19% in 12 months. Seven for 12 rate is a powerful purchase, and only one sales. If the world is becoming more and more threatening, Melrose’s defensive connections can become even more valuable.

Unfortunately, I can’t imagine that the Rolls-Royce moon arrows can pull. Rolls was in a mess when the transforming boss Tufan Eggilgiç took over in 2023. Melrose is in a better place. But I still think that it is worth considering today.