STA­DIO

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Share price: 382c JSE code: SDO

BUY THERE WAS AN INI­TIAL FLURRY of ex­cite­ment when this ter­tiary ed­u­ca­tion spe­cial­ist was un­bun­dled late last year from PSG Group-con­trolled pri­vate-ed­u­ca­tion jug­ger­naut Curro Hold­ings.

But the pri­vate-ed­u­ca­tion of­fer­ing has shown some fal­li­bil­ity at the schools level in the past 12 months, with rapid growth rates checked. Sta­dio’s share price peaked at 878c in De­cem­ber last year, but was se­verely beaten back to a record low level of 382c at the time of writ­ing. The shift seems to be in sym­pa­thy with sim­i­lar re­treats by Curro.

Sta­dio CEO Chris van der Merwe is bristling with con­fi­dence about the com­pany’s abil­ity to cap­ture a sig­nif­i­cant slice of SA’s ter­tiary-ed­u­ca­tion de­mands, with af­ford­able stu­dent pack­ages.

The macro-in­di­ca­tors are very promis­ing, as the Na­tional Devel­op­ment Plan has set a tar­get to ac­com­mo­date 1.6m stu­dents in higher ed­u­ca­tion by 2030. At this junc­ture 1m stu­dents at­tend 26 pub­lic uni­ver­si­ties and only 165,000 stu­dents are en­rolled in pri­vate higher ed­u­ca­tion. So Sta­dio’s goal of ac­com­mo­dat­ing 56,000 stu­dents by 2026 is hardly far fetched.

If Sta­dio has, as Van der Merwe has sug­gested, more growth po­ten­tial than Curro, then Sta­dio should be ac­cu­mu­lated at cur­rent lev­els.

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