Our opinion on the current state of CALGRO-M3(CGR)Calgro (CGR) is a developer of large-scale integrated properties, rental units, and memorial parks. Established in 1995, the company was listed on the JSE in November 2007. Calgro acquires suitable land, plans developments, and then sells or rents residential units or memorial park plots. The company recently secured additional funding of $25 million to finance new development projects. However, one of the challenges it faces is illegal land invasions, which have affected its operations.
In its results for the six months to 31st August 2024, Calgro reported a 26.4% decrease in revenue and headline earnings per share (HEPS) of 101.4c, up from 78.88c in the previous period. The company explained, "A decrease in revenue for the period under review was primarily driven by reduced unit sales due to pressure on the already constrained consumer, and delayed transfers. The Group, however, banked over R200 million in cash during the first two weeks of September."
Technically, the share has been in a strong upward trend since March 2023. Like many property companies, Calgro is still trading well below its net asset value (NAV), offering substantial value to investors. It was added to the Winning Shares List (WSL) on 15th August 2024 at 356c and has since risen to 660c, reflecting significant growth.
