Calgro M3 (JSE:CGR) -- Addressing South Africa's Housing Shortage | Desert Lion 2024 Q4

Leveraging Affordable Housing Demand and Robust Pipeline

Apr 08, 2025

Summary

Focus on affordable housing for lower- and middle-income segments in South Africa.
Secured pipeline of over 38,000 units across 9 developments.
Strong demand despite challenging economic conditions and high interest rates.
Trading at less than 3 times earnings and a 60% discount to book value.

Calgro M3 was featured in Desert Lion 2024 Q4 for its strategic focus on affordable housing, a critical need in South Africa. With a significant housing shortage, Calgro’s developments around economic hubs like Cape Town and Johannesburg position it well to capitalize on this demand. The company’s robust pipeline and strong balance sheet further enhance its growth prospects.

"Calgro’s balance sheet is robust, the operating environment is improving, and we are viewing the outlook as positive. Yet, the share price is trading at less than 3 times earnings and a 60% discount to book." — Desert Lion 2024 Q4 Fund Letter

Read full letter at gurufocus Desert Lion 2024 Q4 page.

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