Hellaby was moving from being an investment holding company to a business builder and owner.
"Refocusing on a smaller number of businesses is likely to lower its cost structure and increase return on invested capital,'' she said.
Managing director AlanClarke's past track record was testament to that, Ms Kinnaird said.
Forsyth Barr had resumed its coverage of Hellaby with an outperform rating, as the company had attractive growth prospects over the next 12 months which were not reflected in the share price.
The automotive group had favourable growth opportunities in its auto-electrical businesses, given the rising demand for auto-electronic applications and electric vehicles.
The automotive sector would be further buoyed by elevated population growth and a rising average vehicle age in New Zealand and Australia, she said.
"We are supportive of Hellaby increasing its exposure to the auto-electric market, given the long-term risk of lower demand for internal combustion engines.''
Forsyth Barr saw value in the resource-services group with its global scalability, operational leverage and favourable growth in the environmental and industrial services sector.
The previously deferred Catalyst Handling Mechanical Services projects would start in the second half of the financial year due to the crude oil price stabilising and the approach of the high oil consumption period, Ms Kinnaird said.
Project visibility would improve on additional business acquisitions and as a proportion of the environmental work increased.
However, the nature of a large proportion of the division meant revenue could vary from period to period.
The key issue for Hellaby was unlocking the value through divestments, she said.
Hellaby traded at a "significant conglomerate discount'' due to operating four relatively unrelated divisions.
Having a renewed focus on a smaller number of businesses would probably lead to a lower business cost structure and improved return on invested capital.
