SUMMARY | Position: LONG | Upside target: R29.00 | Reward / risk ratio: – Recommended stop-loss: R22.00 | RECOMMENDATION: BUY
Dis-Chem is one of South Africa’s leading healthcare retailers, offering a wide range of pharmaceutical products and over-the-counter medications. Other offerings include personal and cosmetic products, household goods, health foods, baby care products, and a selection of vitamins and nutritional supplements.
Dis-Chem’s retail growth over FY23, although strong (+6.5%), was slightly lower compared to that of the half-year point (+9.3%) as high inflation and rising interest rates weighed further on customer wallets. Wholesale growth stood firm (+10.4%), and the group’s headline earnings per share grew by an impressive 17.4%.
Technically, Dis-Chem’s share price is displaying early signs of bullish divergence, making it attractive as an investment opportunity. This suggests …
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