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 six months to 31st March 2023 the company reported revenue up 20% and earnings per share (EPS) up by 27%. The company said, "The Car Rental business delivered solid revenue growth of 26% compared to the prior period. The Leasing business is very stable and remained resilient over a challenging period, with revenue up 6% year on year". In a trading statement for the year to 30th September 2023 the company estimated that HEPS would rise by between 15% and 20%. By November 2023 the share was showing signs of a new upward trend and trading on a P:E of 3,62 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.