Finweek English Edition - - INVESTMENT -


Charl de Vil­liers at San­lam In­vest­ment Man­age­ment (SIM) has re­cently up­dated his call on the JSEl isted in­dus­trial group. He says that there is sig­nif­i­cant value in the com­pany, which he ex­pects to be re­alised when re­turns on cap­i­tal im­prove and debt is man­aged to an ac­cept­able level. De Vil­liers did how­ever cau­tion: “There is a risk of the com­pany not de­liv­er­ing on its com­mit­ments. How­ever, man­age­ment is acutely aware of the is­sues that are cur­rently caus­ing a drag on the group’s rat­ing (Stein­hoff trades on a for­ward P/ E of about 7 to 8 times). It re­alises that in the wake of the re­cent repo­si­tion­ing of the group in the cur­rently weak macro en­vi­ron­ment in Europe and SA, it now needs to de­liver op­er­a­tionally on th­ese changes.”

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