Undervalued stocks are those in which the firm has a long-term track record of profitability and strong growth potential, although its share price is low relative to its competitors. Stocks like these can be fantastic selections for patient buy-and-hold investors prepared to wait for hidden growth.
10 Most Undervalued Stocks in South Africa Revealed (2025):
- ☑️ Naspers/Prosus
- ☑️ Tsogo Sun Gaming
- ☑️ Anglo American
- ☑️ MTN
- ☑️ Sun International
- ☑️ British American Tobacco (BAT)
- ☑️ Massmart
- ☑️ Glencore
- ☑️ MAS Real Estate
- ☑️ Grindrod
Naspers/Prosus
Due to its disproportionate stature on the JSE, most South African investors will be familiar with Naspers and, more lately, Prosus.
Over the past decade, Naspers has achieved a cumulative total return of 9x compared to the JSE All Share Index’s return of just 1.7x, making their contribution to the South African savings industry enormous.
Naspers and Prosus’s non-Tencent assets will be the long-term drivers of their wealth growth, despite Tencent’s continued importance to the investment case.
With a 29 percent investment in Tencent, Prosus’s market capitalization is now 140 percent more than it was in 2013. In addition to the Tencent share, Prosus’s current market capitalization includes 33 percent of the company’s ex-Tencent assets, which are undervalued by the market.
This is in addition to the fact that Tencent has a 38 percent stake in its current market value in investments, as well as a diverse portfolio of businesses spanning gaming, social networks, fintech and cloud market sectors.
A few years of double-digit revenue and profit growth are thus still within reach for the corporation. Prosus shares are a rare combination of both undervaluation and growth potential that combine to create a very appealing opportunity for investors.
Tsogo Sun Gaming
Tsogo Sun Gaming is Southern Africa’s premier gaming and entertainment group. As of 31 March 2025, Tsogo Sun Gaming owned and operated 13 premier casino and entertainment destinations in six provinces of South Africa.
The major driver of long-term growth will arise from maximizing the revenue generated from the group’s asset base, in addition to reviewing operational overheads to ensure they are either in support of the objective of sustainability or growth.
Tsogo Sun Holdings has stated that the hotel’s segment serves a distinct customer base than the gaming division and is subject to different demand and risk profiles, particularly in the regulation of the gambling industry.
Even while their hotel portfolio is operating at lower than expected occupancies, it’s less risky and has a more predictable earnings profile than many of their rivals’ hotels, creating an undervalued potential for future growth.
Anglo American
Anglo American is the world’s top primary producer of platinum group metals, accounting for around 38% of worldwide supply.
It’s hard to think of quality products, commercial success, or a world-class management structure without thinking of Anglo-American Platinum.
Platinum, palladium, rhodium, iridium, and ruthenium are normally purified to 99.99 percent purity by the refinery team, and rhodium, iridium, and ruthenium are typically purified to 99.95 percent purity.
For a variety of reasons, the company continues to be a good investment. Anglo American is the world’s largest platinum producer, and it has a strong parent company.
Management has shifted its attention from selling off the higher-cost activities to increase productivity, which had previously been a burden for the group.
MTN
The MTN Group, formerly known as M-Cell, is a South African multinational mobile telecommunications corporation that has grown into one of its sector’s largest organizations.
With 20 million consumers in South Africa, the corporation has a 37 percent market share in Africa, Europe, and Asia.
Voice, data, wireless, and telemetry products are available to both consumers and corporations through the company’s product line. Since its inception, MTN has grown to employ more than 21,000 people and spend more than R130 billion on infrastructure.
MTN has established itself as a worldwide player, and MTN shares are expected to rise in the future as the business continues to expand its product line. This means that MTN shares are currently undervalued, making them a good buy at this time.
Sun International
The gaming and leisure companies of South Africa’s Sun International Group are some of the most well-known and well-regarded in the country.
Sol Kerzner, a business tycoon, founded the company in 1967, and it has grown to include 18 resorts, luxury hotels, and casinos, including the Sun City, Grand West Casino, and Carnival City flagship properties.
Before the Covid-19 pandemic hit, Sun International (Sun) was in trouble because of its excessively geared balance sheet being burdened by an underperforming gaming component and a loss-making Sun City.
However, a return to normalcy may cause the share price of Sun International to rise by 50 percent to 100 percent, as many analysts expect it to do.
British American Tobacco (BAT)
British American Tobacco was founded in London in 1902 and is a British global corporation. Cigarette brands such as Dunhill, Kent, Lucky Strike, Pall Mall, and Rothmans are owned by the corporation.
Vuse, Glo, and Velo are just a few of the company’s many tobacco-free brands. In addition to its excellent dividend, British American Tobacco offers investors a wealth of other benefits.
BAT’s 8.55 percent dividend yield makes it an attractive investment opportunity for those who want to wait for the rest of the market to catch up and understand that this stock is in fact undervalued.
Massmart
More than 400 stores are owned by Massmart Holdings, a South African-based regional management organization specializing in the distribution of low- and middle-income products to the LSM market.
A portfolio of four businesses, Massdiscounters, Masswarehouse, Masscash, and Massbuild, is responsible for the company’s day-to-day operations.
To remain competitive, Massmart has a low-cost, high-volume business model that allows it to offer low pricing on a wide range of products at a low cost.
Despite a challenging climate for consumer spending, Massmart has been able to increase sales and generate rising dividends.
However, if consumer spending begins to pick up, a competitive business strategy should augur well for Massmart’s share price. Shares in Massmart will be purchased by investors in the anticipation of long-term growth.
Glencore
Glencore generates money from trading its products after they have been mined and transported throughout the world.
As the global economy has been readjusting, so has the demand for copper, coal, nickel, and silver. As the world’s largest consumer of coal and copper, China is Glencore’s primary source of revenue. A lack of coal and increased demand have caused coal prices to soar in recent months.
Commodity prices are volatile, and Glencore’s trading arm gives it a competitive advantage. Nickel, cobalt, and copper are among the metals in the company’s portfolio that are in high demand, which makes this an undervalued stock with great potential for future growth.
MAS Real Estate
MAS P.L.C. is a listed property investor and operator on the Johannesburg Stock Exchange’s main board. Investment, acquisition, leasing, asset management, marketing, and finance are all part of the group’s internal management.
Acquisitions of well-tenanted properties, development of the company’s own property portfolio and management of the company’s capital structure are all part of the group’s growth plan.
Analysts think that the company is well-positioned to benefit from favorable conditions in the European property markets. MAS Real Estate shares are expected to reward patient investors, according to the market consensus.
Grindrod
An agreement has been reached between Grindrod Intermodal (GIM) and Ocean Africa Container Lines (OACL), two South African container logistics companies, to combine their operations with A. P. Moller Maersk’s (Maersk’s) inland container ports.
Customers will have access to a wide range of supply-chain solutions as a result of the cooperation, which will improve global integrated logistics.
There is a wide range of logistics and service options for new and existing customers, including transportation by road, rail, or sea, warehousing, containers, and traditional logistics – from origin to destination.
Bringing together operational expertise, talents, and capacities and expanding the company’s infrastructure and geographic presence are the goals of the proposed joint venture.
The South African economy will benefit from increased investment in assets and infrastructure in the future.
With markets opening up and international trade recommencing after the pandemic lockdowns, this recent acquisition is set to deliver strong growth for Grindrod going forward, making it an excellent undervalued stock to consider now.
Conclusion
For a corporation to have intrinsic value, the present value of the company’s predicted free cash flows must be calculated.
Analysis of financial statements and other fundamentals, such as cash flow, return on assets, profit generation, and capital management, can help determine an undervalued stock’s true value.
South African stocks are undervalued by a wide margin. In fact, Africa’s third-cheapest emerging market, even now, is South Africa, despite the fact that local firms have met or exceeded market expectations in 71% of cases so far.
Because of the poor market value of many JSE-listed shares, foreign corporations have begun bidding for them, while they also provide excellent growth stocks for investors seeking long-term profits.
In this article, we listed the 10 most undervalued stocks in South Africa that present unique advantages for growth to investors on the JSE.
Top 4 Brokers
