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Master Drilling Group Limited. JSE: MDI

Master Drilling shares

Background of Master Drilling

  • Master Drilling Group is a South African investment holding company with subsidiaries involved in providing specialised drilling services to companies in the mining, construction, civil engineering and hydro energy sectors. The group is particularly recognised for being a world leader in the raisebore drilling services industry.

  • The group’s history stems back to 1986, at Impala Mine in the North West. Master Drilling shares have been available to buy on the Johannesburg Stock Exchange (JSE) since 2012. Still in its initial listed growth phase, no dividends are paid to shareholders yet, with cash resources used primarily for investment in assets.

  • South African operations are managed through subsidiary companies Master Drilling South Africa, Master Drilling Exploration and Drilling Technical Services, while the international division includes entities in Africa, Europe and Latin America. Master Drilling recorded revenue of US$120 million for the 2015 year, and has a JSE market cap of R1.93 billion. The live online stocks chart shows that Master Drilling share price has risen slightly since listing.

Master Drilling Shares Growth Driver

  • Master Drilling’s performance is largely dictated by the strength of the mining, engineering and construction sectors, particularly in South Africa. These industries have been struggling lately, which has impacted on profits. Master Drilling share price and overall financial data have however weathered the storm well.

  • The key growth driver of the business is diversification of drilling services across a range of aspects, including geographies, business sectors, activities, commodities and clients. This is to cushion and strengthen the business in the face of negative cycles and to mitigate against exposure to any single geography, commodity or sector.

  • Whilst revenue was slightly down in 2015, profit data was good, increasing by 35% from R200.1 million to R269.6 million. Shareholders enjoyed a 39% increase in basic earnings per share, up to 172 cents. Revenue in South Africa declined due to foreign exchange losses against the dollar and the tough economic conditions for major customers, but operations in the rest of Africa enjoyed a 23% revenue increase, with strong contributions from Zambia, Mali and the DRC. Costs have been well managed, which has resulted in a healthy operating profit margin of 25%. Significant capital investment has been put into developing new technology such as raiseboring machines and support systems.

  • The group is also expecting to see added benefits from geographic expansion, with plans well underway to buy new operations in the United States and Latin America. These should provide a shield against difficult conditions in South Africa’s industrial sector, where Master Drilling is planning to put some assets up for sale.

Master Drilling Investor Tip

  • Master Drilling share price has risen from R8.90 to R13 since listing on the JSE. The company’s performance is forecast to remain muted in the medium term due to the economic conditions in South Africa, but as the international operations increase their contribution, Master Drilling shares should still be able to generate some growth for those who buy the shares. Investors who buy Master Drilling shares can be optimistic about long-term gains.

Master Drilling Major Shareholders

AMI Trust, MDG Equity Holdings, Kagiso Asset Management, Coronation Fund Managers, Investec Asset Management.

  • Sector

    Industrials

  • Industry

    Machinery

  • Sub industry

    Construction & Mining Machinery

How to buy Master Drilling Group Shares

  • Master Drilling : How to buy Master Drilling Group Shares Online

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

  • Here are the steps you must follow to Buy / Purchase Master Drilling 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 Massmart Group.
    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)
  • Buy Shares with Confidence

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<a href="https://www.sashares.co.za/masterdrill-shares">Credits: SA Shares™</a>
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