By Peet Serfontein & Jalpa Bhoolia
Bidcorp is a market-leading food service product distributor across several geographies including the United Kingdom, Europe, Middle East, South America, the Asia-Pacific region, and South Africa. The company's business units operate across the food and ingredient manufacturing sectors, such as catering, hospitality, leisure, baked products, poultry, meat, seafood, and processing. The strategy is to grow organically in existing regions and acquisitively in new.
Technically, a share that is developing a base presents an enticing investment opportunity (see the grey shaded rectangle on the main chart).
Base formations precede significant price movements while a consolidation period reflects strengthening fundamentals, increasing the likelihood of sustained upward momentum once the price breaks out of the base.
The share is in the Markup phase out of the Wyckoff Price Cycle, which also supports a bullish case. This phase indicates that demand is outweighing supply, leading to a sustained upward trend. As higher highs and higher lows develop, it reinforces the case for continued price appreciation.
Additionally, the price is developing a trough per the Elliott Wave theory, which is supportive of a bullish scenario. This trough represents a turning point, where selling pressure diminishes and buying interest increases, aligning with expectations of a broader uptrend.
We suggest a low to medium capital at risk allocation to this trade. Increase exposure for a break above R456.
| Share Information | |
|---|---|
| Share Code | BID |
| Industry | Food And Beverage Wholesalers |
| Market Capital (ZAR) | 147.43 billion |
| One Year Total Return | 3.33% |
| Return Year-to-Date | 2.09% |
| Current Price (ZAR) | 439.57 |
| 52 Week High (ZAR) | 478.16 |
| 52 Week Low (ZAR) | 400.43 |
| Financial Year End | June |
| Several technical indicators suggest that the share price is well positioned for upside potential. Expect moderate volatility in the price going forward. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (ZAR) | 23.96 | 26.29 | 27.92 | 30.52 |
| Growth (%) | 9.73 | 6.17 | 9.32 | |
| Dividend Per Share (ZAR) | 10.90 | 11.42 | 12.53 | 13.75 |
| Growth (%) | 4.77 | 9.71 | 9.76 | |
| Forward PE (times) | 16.72 | 15.75 | 14.40 | |
| Forward Dividend Yield (%) | 2.60 | 2.85 | 3.13 | |
| Company fundamentals remain solid and near-term earnings growth is decent. | ||||
Buy/Sell Rationale:
Technical Analysis:
Long term fundamental view:
| Share Name and Position | BVT - Stop Loss (Close the position) |
CML - Stop Loss (Close the position) |
OMU - Time Exit (Close the position) |
|---|---|---|---|
| Entry | 284.70 | 40.04 | 12.48 |
| Current | 258.15 | 37.31 | 12.07% |
| Movement | -9.3% | -6.8% | -3.3% |
| The stock reached its stop-loss level, leading to the closure of the position. | The share reached its stop-loss level, leading to the closure of the position. | The stock has reached our time exit date, and we closed the trade. |
| Share Name and Position | SHP - Buy (Continue to hold) |
NTC - BUY (Continue to hold) |
GRT - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 292.78 | 15.49 | 13.22 |
| Current | 294.13 | 15.21 | 12.75 |
| Movement | +0.5% | -1.8% | -3.6% |
|
A period of low volatility remains of interest. Downside price momentum is a concern. Remains above its 200-day simple moving average.
Our profit target is R317 with a trailing stop-loss at R268. Exit the trade on 1 September 2025. |
A bullish price swing in the price that reflects an improving sentiment remains of interest. Remains above its 200-day simple moving average. Downside price momentum continues to be a concern.
Our profit target is R17.40 with a trailing stop-loss at R14. Exit the trade on 24 November 2025. |
A price trading at one of the highest price bins in its price distribution analysis remains of interest. Remains above its 200-day simple moving average. Downside price momentum is concerning.
Our profit target is R16 with a trailing stop-loss at R12. Exit the trade on 17 November 2025. |
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