2024-06-09 11:20:00 ET
Summary
- Calgro M3 is a residential property developer in South Africa, focusing on affordable housing for lower- and middle-income segments.
- Despite a housing shortage of 5.5 million houses, Calgro is delivering 2,000 to 3,000 units per year, with a secured pipeline of about 23,000 units.
- Calgro's recent financial results were excellent, with improved profits, strong cash flow, and a solid return on equity. The stock is trading at a low PE multiple and discount to book value.
The following segment was excerpted from this fund letter.
Calgro M3 ( OTCPK:CLMHF , JSE:CGR)
Calgro is a residential property developer focusing on affordable housing for South Africa’s lower- and middle-income market segments. The firm delivers about 2,000 to 3,000 units (free standing homes or apartments) per year, with developments mostly concentrated around the economic hubs of Cape Town and Johannesburg. It also has a growing memorial parks (cemeteries) business with much future potential....
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Desert Lion Capital - Calgro M3: Performance Justifies Valuation Multiples