SSL | Long (Speculative Value Play) | Deep Value l | (June 25)

SSL | Direction: Long (Speculative Value Play) | Key Reason: Deep Value & Bounce Potential | (June 25, 2025)

1️⃣ Insight Summary
SSL (Sasol Limited) is deeply undervalued compared to peers, trading around $4.55 against annual revenue near $14.7 B—presenting a potential rebound opportunity if it stabilizes near key structural support.

2️⃣ Trade Parameters
Bias: Long (value bounce setup)
Entry: Around $4.55
Stop Loss: Below $1.00 (if price collapses—major risk zone)
Take Profit 1: $8.00 (near the midpoint of the range)
Take Profit 2: $13.50
Take Profit 3: $16.96
Extended Target: $25.00 (reversion to mean)

3️⃣ Key Notes
✅ Strong revenue & diversified operations: ~ $14.7 B TTM revenue from chemicals and energy; net income recently at ~$2.8 B loss but a history of stronger profitability
✅ Deep undervaluation: P/E ratio ~2× industry; P/B ~0.37; PEG ~~0.2 indicates extreme value
❌ High debt burden: Debt roughly twice the free cash flow; dividend cuts reflect financial strain
✅ Bullish case if stabilized: Integrated production chain and potential rebound in commodity prices could fuel recovery.
⚠️ Significant risk: Weak recent performance; steep sell-offs; stop loss below $1 reflects potential equity wipeout.

4️⃣ Follow-Up Note
Watch quarterly earnings (next on Aug 25, 2025) and any debt restructuring. A break above $8–9 with improving sentiment would support moving to higher targets; failure to hold near current levels could invalidate the thesis.

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Disclaimer: This is not financial advice. Always conduct your own research. This content may include enhancements made using AI.