Finweek English Edition

Is it the end of losses?

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The Murray & Roberts* results for the year ended 30 June, released on 1 September, spooked the market as the discontinu­ed operations lost another R256m at the operating level while continuing operations made a profit of R540m. The company says this will be the last of the large losses from discontinu­ed operations and expect the rest of the business to double profits over the next year or two. That will translate into some R1bn in profits and puts the stock on a forward P/E of around 4.5 times. This may be slow going but I still like the stock and think there is decent value at current price levels, albeit large contracts always come with risk on pricing and delays.

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