KARO trade ideas
Our opinion on the current state of KAROO(KRO)Cartrack was folded into a new international listing under the name Karooooo (KRO) on 21st April 2021. The company operates in vehicle recovery, insurance, telematics, and fleet management across twenty-four countries worldwide. With a 92% vehicle recovery rate, Karooooo claims industry leadership in this area. It has experienced rapid organic growth, with its subscriber base growing at a compound annual rate of 21% over the past six years. Notably, 96% of the company's revenue is derived from annuity income, providing stable, recurring revenue.
The company's founder, Zak Calisto, owns 68.5% of the Singapore-based firm Karooooo. Given its strong annuity income, rand-hedge characteristics, and rapid growth, Karooooo is an attractive investment for private investors. It has also been gaining strong institutional interest. The company's business model requires almost no working capital, and its high levels of annuity income ensure overheads are covered at the start of each month. Investors are encouraged to accumulate shares during any market weakness.
On 7th December 2020, the company announced its listing on the NASDAQ with an inward listing on the JSE, allowing it to raise funds on the international market. On 12th February 2024, Karooooo announced that it would buy back up to 1 million of its ordinary shares in the market, reflecting confidence in its future performance.
In its results for the six months to 31st August 2024, the company reported earnings per share (EPS) up 31% and a 17% increase in subscribers to 2,136,610. Subscription revenue grew by 15%. The company highlighted that Cartrack delivered record operating profit of ZAR293 million, a 16% increase compared to Q2 2024's ZAR252 million. The gross profit margin expanded to 74% from 71%, and the operating profit margin remained strong at 29%. Additionally, Karooooo Logistics’ operating profit grew by 20%.
Although the share is not cheap, trading at a P:E of 30.31, its impressive growth record and rand-hedge qualities make it a "must-have" investment for private investors.
Our opinion on the current state of KAROO(KRO)Karooooo (KRO), formerly known as Cartrack, is a vehicle recovery, insurance, telematics, and fleet management company operating in 24 countries worldwide. The company boasts a 92% recovery rate, claiming it to be the best in the industry. Karooooo has demonstrated rapid organic growth, with a 21% compound annual growth rate in its subscriber base over the past six years. Approximately 96% of the company's turnover is annuity income, providing a stable and predictable revenue stream.
Zak Calisto, the founder, holds a significant ownership stake of 68.5% in the Singapore-based firm Karooooo. The company has almost no working capital requirements, and its annuity income ensures that overheads are covered before the month begins, making it an attractive investment option, especially for private investors seeking a rand-hedge.
Karooooo's listing on NASDAQ with an inward listing on the JSE enhances its ability to raise funds on the international market, attracting strong institutional interest. The company's financial performance continues to be robust. In its results for the year ending 29th February 2024, Cartrack subscribers increased by 15% to 1.97 million, and subscription revenue rose by 17%. Operating profit grew by 18% to a record ZAR1,043 million, and earnings per share increased by 24% to ZAR23.85.
On 12th February 2024, Karooooo announced a buyback program for up to 1 million of its own ordinary shares in the market. In the first quarter update, the company reported a 17% increase in subscribers and a 15% rise in subscription revenue. Operating profit for the quarter grew by 34% to ZAR300 million, and earnings per share increased by 41% to ZAR7.17.
Despite trading at a P/E ratio of 26.87, which is relatively high, Karooooo's impressive growth track record and strong financial performance justify its valuation. The company's stable annuity income, minimal working capital needs, and global presence make it a resilient investment. Given these factors, Karooooo remains a "must-have" investment for private investors, and accumulating shares on any weakness is recommended.
KARO is taking off, DO NOT miss this oppotunity !b]Time to fly with excellent technical and fundamental stock
Stoploss (100%) when close price less than 25
Take Profit (30%) when close price reach 53
Hidden Gem in Tech Investments for 2024? Is Karooooo Ltd. (NASDAQ:KARO) the Hidden Gem in Tech Investments for 2024? Unveiling Its Explosive Potential!
Introduction:
Karooooo Ltd. (NASDAQ:KARO), a powerhouse in mobility software-as-a-service (SaaS) solutions, has been making waves in the connected vehicle space. With a comprehensive suite of services designed for fleet management, risk management, and logistical optimization, Karooooo's recent financial performances and market positioning suggest a company on the rise. This analysis delves into the details, providing investors with a clear picture of Karooooo's potential.
Revenue and Profit Forecasts:
Karooooo has demonstrated a strong financial performance, with a noteworthy increase in subscription revenue and earnings in Q2 2024. This trend is underpinned by an innovative product lineup and a solid market presence, promising a bright future for the company. Analysts have set the price target for KARO shares to range from $29.00 to $31.00, indicating a potential upside of approximately 21.9% from its current price.
Growth Drivers:
The primary growth drivers for Karooooo include its cutting-edge Fleet Telematics, LiveVision, MiFleet, and Karooooo Logistics platforms. These solutions cater to a growing demand for efficient fleet management and connected vehicle services across various sectors. Moreover, the company's strategic geographic expansion and focus on innovation are pivotal to its growth trajectory.
Recent Financial Performance:
Karooooo reported impressive earnings for Q3 2024, with EPS and revenues surpassing analyst expectations. This performance reflects the company's ability to exceed in a competitive landscape, reinforcing its market position and investment appeal.
Technical and Market Outlook:
Despite a fluctuating market, Karooooo has shown resilience with a relatively stable share price. The company's stock demonstrates less volatility compared to the broader software industry, suggesting a potentially safer investment in a volatile tech sector.
Conclusion:
Karooooo Ltd. stands out as a compelling investment option within the tech sphere, thanks to its robust financial performance, innovative service offerings, and strategic market positioning. As the company continues to navigate the dynamic tech landscape with agility and innovation, it presents a unique opportunity for investors seeking growth in the connected vehicle sector. With analysts forecasting a positive upside, Karooooo is undoubtedly a stock to watch in 2024.
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NOT TRADING ADVICE. ALWAYS DO YOUR OWN RESEARCH.
Our opinion on the current state of KROCartrack, now operating under the name Karoo (KRO) since its international re-listing on 21st April 2021, is a global player in the vehicle recovery, insurance, telematics, and fleet management industry, with operations across twenty-four countries. Boasting an impressive 92% recovery rate, which it claims to be the industry's best, Karoo demonstrates strong and rapid organic growth. Over the past six years, the company has achieved a 21% compound annual growth rate in its subscriber base. A significant portion of the company's revenue, approximately 96%, is derived from annuity income, providing a stable and predictable cash flow.
The company's founder, Zak Calisto, holds a substantial 68.5% stake in the Singapore-based firm, "Karooooo." Karoo's business model, characterized by its rapidly growing annuity income and its ability to hedge against the rand, makes it an attractive investment opportunity, especially for private investors. It has garnered considerable interest from institutional investors, underpinned by its virtually nonexistent working capital requirements and the assurance that its overheads are covered at the beginning of each month thanks to its annuity income.
Karoo's decision to list on the NASDAQ, with an inward listing on the Johannesburg Stock Exchange (JSE) announced on 7th December 2020, has opened avenues for international fundraising. For the six-month period ending on 31st August 2023, Karoo reported a 15% increase in Cartrack subscribers, totaling 1.832 million, and a 21% revenue increase, with subscription revenue rising by 17%. Earnings per share (EPS) also saw growth, moving from 493c to 561c. The company highlighted a record operating profit of ZAR252 million for the second quarter of 2024, up 13% from the previous year, with a consistent gross profit margin and a slightly adjusted operating profit margin.
Continuing its growth trajectory, Karoo reported a 16% revenue increase and a 14% rise in Cartrack subscribers to 1.9 million for the third quarter ending on 30th November 2023. Furthermore, on 12th February 2024, the company announced a share buyback plan, aiming to repurchase up to 1 million of its own ordinary shares in the market.
Despite a relatively high price-to-earnings (P:E) ratio of 24.7, Karoo's remarkable growth record and its status as a rand hedge position it as a compelling investment for private investors. The share is considered a "must-have" investment, offering a blend of growth potential and financial stability.
Our opinion on the current state of KROCartrack was folded into a new international listing under the name Karoo (KRO) on 21st April 2021. It operates a vehicle recovery, insurance, telematics, and fleet management company operating in twenty-four countries around the world. It has a 92% recovery rate, which it claims is the best in the industry. It has very rapid organic growth, having grown its subscriber base by 21% compound over the past six years. Approximately 96% of the company's turnover is annuity income. The founder, Zak Calisto, owns 68,5% of the Singapore firm called "Karooooo". Given its rapidly growing annuity income and its rand-hedge character, we regard this share as an ideal investment for private investors. It is attracting strong institutional interest. The company has almost no working capital and its annuity income ensures that its overheads are already covered before it opens its doors at the beginning of each month. We suggest that you accumulate this share on any weakness. On 7th December 2020, the company announced that it would list the company on the NASDAQ with an inward listing on the JSE. This enables the company to raise funds on the international market. In its results for the six months to 31st August 2023 the company reported second quarter Cartrack subscribers rose 15% to 1,832m and total revenue increased by 21% with subscription revenue up 17%. Earnings per share (EPS) rose to 561c from 493c in the previous period. The company said, "Despite our strong investment for growth, Cartrack delivered a record operating profit of ZAR252 million, up 13%, in Q2 2024 (Q2 2023: ZAR224 million). Gross profit margin was steady at 71% (Q2 2023: 73%), with an operating profit margin of 29% (Q2 2023: 30%)." In its results for the third quarter ending on 30th November 2023 the company reported revenue up 16% and Cartrack subscribers up 14% to 1,9m. On a P:E of 23,8, this share is not cheap, but it has an amazing growth track record and it is a rand hedge. We continue to regard this as a "must have" investment for private investors.
Our opinion on the current state of KROCartrack was folded into a new international listing under the name Karoo (KRO) on 21st April 2021. It operates a vehicle recovery, insurance, telematics, and fleet management company operating in twenty-four countries around the world. It has a 92% recovery rate, which it claims is the best in the industry. It has very rapid organic growth, having grown its subscriber base by 21% compound over the past six years. Approximately 96% of the company's turnover is annuity income. The founder, Zak Calisto, owns 68,5% of the Singapore firm called "Karooooo". Given its rapidly growing annuity income and its rand-hedge character, we regard this share as an ideal investment for private investors. It is attracting strong institutional interest. The company has almost no working capital and its annuity income ensures that its overheads are already covered before it opens its doors at the beginning of each month. We suggest that you accumulate this share on any weakness. On 7th December 2020, the company announced that it would list the company on the NASDAQ with an inward listing on the JSE. This enables the company to raise funds on the international market. In its results for the six months to 31st August 2023 the company reported second quarter Cartrack subscribers rose 15% to 1,832m and total revenue increased by 21% with subscription revenue up 17%. Earnings per share (EPS) rose to 561c from 493c in the previous period. The company said, "Despite our strong investment for growth, Cartrack delivered a record operating profit of ZAR252 million, up 13%, in Q2 2024 (Q2 2023: ZAR224 million). Gross profit margin was steady at 71% (Q2 2023: 73%), with an operating profit margin of 29% (Q2 2023: 30%)." On a P:E of 21,41, this share is not cheap, but it has an amazing growth track record and it is a rand hedge. We continue to regard this as a "must have" investment for private investors.
KAROOOOO- Range boundKRO has been trading in a range (400 - 440) since about August last year. It broke out earlier this year (February) but then moved back into the range after failing to follow through. For traders, one could trade this range and for long term players, maybe look for a close above 440 to go long.
Karooooo - Breakout imminentKRO posted a SENS this morning announcing 3rd Quarter Unaudited financial results - look decent. On the chart KRO has been in a sideways consolidation pattern since august last year, but is now coiling between its yellow (downtrend) and blue (uptrend) TL's.
The play here is to look for a break on the upside (yellow downtrend) initially, and then should it clear 442 we could see a further move to 500+
Stop loss is a close below 375.
Bullish FlagThe stock is showing a bullish flag. It is always safe to wait for a breakout to confirm the pattern before you can take any decision.
KRO - 1W - kAROOOThe best bull flag formation i have ever seen! Flagpole and all. Cool! Just thought to share
