The last time IM reviewed enX Group was in 2015’s third quarter, when the industrial conglomerate had just added petrochemical and power generation assets to the operating base of what had been known as Austro. EnX’s market capitalisation at that time was just R1.2bn. At the time of writing, that has more than doubled, thanks to the game-changing acquisition of the old Eqstra group, which brought profitable industrial equipment and fleet management services to the mix. While enX has grown markedly in scale and profitability, its market rating has diminished. This may well be informed (unjustly) by events at Torre Industries — like enX, Torre has followed an acquisition-driven growth strategy — and (justly) by the uncertainty around the performance of its contract mining assets. Though a straining Torre looks ready for breaking up, enX looks more rounded and better focused, operationally speaking. Its share price is now touching levels where longer-term value investors could start pa...

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