Our opinion on the current state of ZZD

Zeda is a car rental company unbundled and spun out of Barloworld with a fleet of 250 000 vehicles and 14 dealerships around South Africa. It holds the licence for the Avis brand in South Africa. The company is 55 years old and listed on the JSE on 13th December 2022, with Ramasela Ganda as its CEO. In its results for the year to 30th September 2023 the company reported revenue up 12,4% and headline earnings per share (HEPS) up 17,3%. The company said, "The rental business grew its fleet to capture the increased demand in the corporate sector and the inbound market. The leasing business revenue growth was driven by a concerted effort to deliver on the strategy of growing heavy commercial fleet". By November 2023 the share was showing signs of a new upward trend and trading on a P:E of 3,41 which looks like very good value. The company is benefiting from the problems at Transnet which have caused many mines to transport their goods to port by road. Zeda has a fleet of rental trucks that have been impacted by the truck attacks on the N3 highway.