Eqstra’s history can be traced back to 1984, when Hertz Leasing was established as a joint venture between Nedfin Bank and Imperial. The company initially provided leasing and related value-added services for passenger vehicles. After various acquisitions and diversification, the renamed Eqstra listed in the General Industrials sector of the Johannesburg Stock Exchange (JSE) in 2008, and boasted profits of R692 million.

The company is today focused on the distribution of mobile capital equipment on long-term leases and rental, as well as value added annuity services in the passenger and commercial vehicle market, industrial equipment and mining sectors in Africa and Europe. The group is split into three divisions, namely: Industrial Equipment, Contract Mining & Plant Rental and Fleet Management & Logistics. Each division is managed as a standalone business. Eqstra Mining Services was put up for sale in 2013 in line with the group’s strategy of scaling down exposure to the volatile industry. The group aims to buy into the entire capital equipment management value chain, from distribution to disposal.

In 2016, Eqstra announced a R7.5 billion deal with enX to buy its Industrial Equipment and Fleet Management & Logistics divisions.

Eqstra’s performance and Eqstra share price have suffered as a result of deteriorating conditions within the group’s target markets. The live online stocks chart shows that Eqstra share price plunged from around R9 in 2013 to R 2.78 by mid-2016.

In the face of slowdown within the mining and industrial sectors, Eqstra has focused on improving efficiencies and restructuring operations. Despite the various challenges, Eqstra managed to increase before-tax profits from R269 million in 2014 to R301 million in 2015. In 2015, the company developed a 2025 strategy, seeking to drive the company’s transformation into an asset-light and diversified business. The strategy aims to return focus to core businesses and leverage relationships with funders to restructure and strengthen the balance sheet. Expanding the portfolio into Europe is a key part of the strategy, whilst a healthy order book is in place for long-term rental and cash sales to support annuity revenue growth. Management is continuing to reduce exposure to contract mining by exiting under performing contracts and improving asset utilization.

Other key focus areas will be to seek non-capital intensive value-added services, develop innovation skills and capabilities, and acquire funding from financial institutions.

Eqstra’s recent deal with enX will make Eqstra the 29.6% owner of enX. enX will issue 52.7 million shares to Eqstra at R 21 a share and raise R 1.5 billion. R 1.4 billion of this will used to re-capitalise the contract mining business and repay current bank debt.

Analysts forecast that the deal will almost double Eqstra share price. Eqstra believes that the current negative cycle in the mining industry has bottomed out, which will allow the remaining mining business to begin exploiting new opportunities. Eqstra shares are currently regarded as undervalued and could be a good buy.

Industrials

Industrial Services

Industrial Distribution & Rental

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Eqstra Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Eqstra Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Eqstra Group.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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