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after reading the second document, the rand weakness is actually helping mkr more than hurting them given they export decent volume to africa. margin pressure is real though, grain costs still elevated. at r27.06 the valuation's not screaming value but not a trap either if they can hold volume through the next two quarters.
Good Morning Everyone. MKR sitting at R27.06, market cap around R2.8bn, pretty lean for a beverage producer. Wine and spirits play in SA is tough with rand weakness hitting import costs and local demand soft, but if they can hold margins on the local portfolio it's a longer hold than a trade.
MKR sitting at R27.06 but spirits market in SA is getting squeezed hard with excise hikes every budget cycle. Comparable beverage plays overseas trading way higher multiples though, so if they can keep distribution tight and push premium lines there's real upside here. Question is whether management can navigate the tax headwinds without volume collapse.
MKR sitting at R27.06 with a R2.8bn market cap is not expensive for a beverage producer but the real question is who's buying their stuff. Wine and spirits market in SA is competitive, plenty of players. Need to see them land a decent distribution deal or retail contract to justify holding this. Otherwise it's just another mid-cap treading water, makes sense to me.
MKR sitting at R26.64 and honestly the spirits side of things is holding up better than most expect given the rand weakness. Comparing to the broader beverage plays, the domestic demand story hasn't cracked yet. Long-term view hasn't changed, just noise in between.
@bayman_jse yeah margins are the real issue here, not the load-shedding excuse. need to see cost control first
margins getting hammered is the real story here not the rand weakness, bayman. spirits demand stays decent but if cost of goods keeps climbing and they can't pass it to the bottle they're stuck. seen this movie before with the big brewers, take two years to recover pricing power.
MKR at R26.03 is cheap if they can land a proper distribution deal with one of the big retailers. Right now they're just shuffling product through smaller channels. Wine and spirits is a tough game in SA with load-shedding killing hospitality but the fundamentals work if volumes move. Let's get a contract, once the deals start, then it will run.
margins getting hammered, waiting for that R25.50 level too
So wine and spirits at R26.03 with basically no revenue stream is a tough sell ngl. Do you think the production side is actually moving or is this just holding onto distributer relationships while waiting for something to happen.
MKR sitting at R26.03 and honestly feels like spirits sector is getting squeezed harder than usual. Wine and spirits are discretionary spend so when rand weakens and folks tighten belts, these guys suffer. Long term you need to believe the export side picks up or domestic demand stays solid through load-shedding chaos, otherwise this looks like a value trap.
MKR at R26.03 is decent value if you believe in the spirits rebound post load-shedding chaos, but ngl the volumes have been thin and margins got squeezed last half. I put an order at R25.50 yesterday, not filled yet but I reckon we see that level before year end. Good day to top up if you're long term on this one.
MKR down 1.10% to R28.78 today, but that's just noise on a pre-revenue play where the real value sits in execution of their renewable projects over the next 12-24 months.
MKR AT R29.10 AND NOBODY TALKING ABOUT THE SPIRITS UPSIDE!! LOOK WHAT HAPPENED WITH DISTELL WHEN THEY LOCKED DOWN PREMIUM DISTRIBUTION, THIS COULD RUN TO R45 EASY IF MANAGEMENT EXECUTES ON THE EXPORT SIDE!! BEST IS YET TO COME!!
MKR closed at R29.10 yesterday but the real question is whether this wine and spirits play can hold above R30 when the market reopens. Margins in this space are getting squeezed hard with load-shedding costs eating into production. If they can keep distribution channels moving and nail the export side, there's meat on the bones here, but the domestic market is pretty thin right now.
MKR closing at R29.10 is solid given where we were a few months back. Spirits and wine demand isn't going anywhere in SA, especially with the tourism bounce coming back. Market cap at R2.8bn feels reasonable for the cash they're turning over. Long hold for me, lol ya.
Current R 27,75 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.