Kaydav Group Limited. JSE: KDV

KayDav shares

Background of Kaydav

  • Based in South Africa, KayDav Group is the country’s largest trading and distribution company operating in the wood-based panelling and packaging industries, boasting a large network of outlets making products for sale in the Western Cape, Gauteng and KwaZulu-Natal.

  • In the panel market, the group trades under Kayreed Board and Timber and David’s Discount Boards. Panels are manufactured through the compression of wood waste and have a variety of applications in the construction, furniture manufacturing and shopfitting industries. Significant quantities are also supplied to other panel distributors. The group’s proftolio also includes value-added services such as cutting and edging.

  • The packaging business trades under Packit Packaging Solutions, with machinery and consumables supplied to the industrial, agricultural and commercial sectors.The group today has eight Board Distribution and Panel centres and two Packaging centres, employing around 500 people. KayDav Group shares are available to buy on the Johannesburg Stock Exchange (JSE) with a market cap of R207 million.

Kaydav Shares Growth Driver

  • Despite a challenging economic environment, KayDav recorded some of its best ever financial results in 2015, with operating profit rising to R50.8 million from R43 million the year before. The group has enjoyed a compounded growth rate in headline earnings per share of 16% over the past four years. After successfully diversifying into packaging, management is working to achieve organic growth in existing businesses by improving operational facets and increasing market share.

  • Success over the past year has been assisted by superior growth in the relatively new outlet in KwaZulu-Natal, along with consolidation of the manufacturing business within the Ottery branch in the Western Cape, which resulted in improved efficiencies.

  • The packaging segment has been successfully integrated and moved to larger warehouse facilities in Johannesburg to facilitate increased activity levels and demand to buy Kaydav’s products. The focus going forward is to widen and deepen the segment’s product offering by working closely with customers and suppliers.

  • The forecast is that the challenging economic environment will have a dampening effect on the group’s performance and Kaydav share price. Initiatives targeted for the short-term future include improved product and sales training, upgraded IT systems,
    improved procurement and business intelligence and evaluating acquisition opportunities within current markets and other industries.

Kaydav Investor Tip

  • KayDav has had several consistent years of solid profit generation, but the live online stocks chart shows that it has yet to really grab the attention of investors. This is surprising considering the group’s strong record on the JSE and its healthy dividends yield of 4.55%.

  • At R1.20, KayDav share price is undervalued. Investors are of the consensus that KayDav shares are under-rated and could be a profitable buy for small cap investors. The business is well-managed, evidenced by the solid returns in a market environment which is less than ideal.

  • As the business environment improves and KayDav continues to expand and diversify, shareholders can expect the trend of profit growth to accelerate. KayDav shares are therefore a worthwhile buy for patient small-cap investors.

Kaydav Major Shareholders

David Brouze Trust, Davidson Family Trust, Gary Davidson, Craig Dawson.

  • Sector

    Consumer Discretionary

  • Industry

    Commercial Services

  • Sub industry

    Other Commercial Services

How to buy Kaydav Group Shares

  • Kaydav : How to buy Kaydav Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Kaydev 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 Kaydev and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Kaydav 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 Kaydev.
    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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