WITH a 100-year history, a 2015 revenue of R5.3bn and profit of R257m, Kaap Agri is one of the best-kept retail secrets, and possibly also the cheapest, operating in SA. If the stock were a main board JSE-listed business in the retail sector its share price would be 50% higher than now.But Kaap is "trapped" trading on the over-the-counter (OTC) market, and I see real opportunity as it heads towards its 2020 goals of a main board listing of value creation if enough coercion is applied, especially to its majority shareholder, Zeder Investments. With about 120 stores in several provinces, Kaap Agri’s fastest-growing area of business is servicing its nonagricultural clients.More than 85% of its business is derived from retail, which is why several years ago I nicknamed the company a "Boere Massmart".Apart from wooden poles, tractors and fertilisers for farmers, Kaap’s biggest-selling items through its approximately 120 stores are pet food, building materials, work and safety wear and, i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.