Invicta Holdings Limited. JSE: IVT

Invicta Holdings Limited shares

Background of Invicta

  • Invicta Holdings is an investment holding and management company incorporated in South Africa and listed on the Johannesburg Stock Exchange (JSE). Invicta controls and manages assets valued at R14.9 billion.

  • The company’s operations comprise three business segments: Engineering Consumables, Capital Equipment and Building Supplies.The Engineering Consumables segment comprises leading businesses such as the Bearing Man Group, Hyflo SA, Hansen, the Man-Dirk Group, OST, Screen Doctor, Autobax andWegezi. The Capital Equipment division includes businesses with leading positions in the distribution of agricultural equipment, construction and forklift equipment. The Building Supplies segment is responsible for sale, production, sourcing and distribution of building supplies.

  • Invicta has a widespread presence across southern Africa and also services the market in South East Asia. The group has a JSE market cap of R5.57 billion, but Invicta share price has fallen drastically over the past few years.

Invicta Shares Growth Driver

  • Invicta’s business model is to buy into distribution businesses with strategic differentiation in their respective markets and an ability to secure distribution rights to global brands and sources of supply. The business’s overall performance and Invicta share price have been negatively impacted by tough trading conditions in the markets in which it operates. The group’s latest financial data for the year ended March 2016 highlighted a 17% drop in operating profit to R846 million. This was largely due to a dramatic weakening in mining and construction activities in Africa and South East Asia, deterioration in industrial and manufacturing activity in South Africa and the severe drought which suppressed the agricultural industry. The group invested capital in only three small acquisitions during the year.

  • Following extensive legal and capital restructuring in 2015, the group had 37% more shares in issue during the year, resulting in a 47% decrease in earnings per share. Dividends therefore also declined to 142 cents per share.

  • The forecast is that trade conditions will remain very challenging going forward. The group is preparing for stringent margin management, cost control and working capital optimisation. On the bright side, Invicta expects that the current cycle will present opportunities for meaningful acquisitions at reduced prices. The group is aiming to generate cash within existing businesses and deploy this cash for to buy into acquisitions that diversify revenue streams geographically. By 2020, the group aims to have 50% of revenue and profits generated from non-South African sources.

Invicta Investor Tip

  • The live online stocks chart shows that Invicta Holdings share price has suffered a drop from R128.50 in 2014 to R55 by August 2016. The company has identified some opportunities to buy into bargain acquisitions during the economic downturn, but the challenging trade conditions will not make Invicta Holdings shares a tempting buy for investors. On the plus side, Invicta has plenty of cash on hand to make these acquisitions, and the downturn is likely to end within the next few years. This could make Invicta Holdings shares a good purchase for investors content to wait for long-term returns.

Invicta Major Shareholders

Titan Shareholders, Dorsland Diamante, Peregrine Capital, Foord Asset Management, Sherrell Family Trust.

  • Sector

    Consumer Discretionary

  • Industry

    Distributors – Discretionary

  • Sub industry

    Automotive Wholesalers

How to buy Invicta Group Shares

  • Invicta : How to buy Invicta Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Invicta Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Invicta and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Invicta Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Invicta.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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