Sasol Limited (SSL): A Bull Case Theory

We came crossed a bullish thesis connected Sasol Limited connected Valueinvestorsclub.com by AlfredJones!. In this article, we volition summarize the bulls’ thesis connected SSL. Sasol Limited's stock was trading astatine $6.50 arsenic of November 28th. SSL’s trailing and guardant P/E were 10.58 and 7.81 respectively according to Yahoo Finance.

Sasol Limited operates arsenic a chemic and vigor company.  It offers bitumen, concern heating fuels, naphtha, lubricants and lubricant basal oils, liquefied petroleum gas, automotive and concern lubricants. SSL has emerged from a multi-year restructuring arsenic a contrarian standout successful the chemic sector, demonstrating resilience and disciplined execution.  Sasol Limited (SSL) has emerged from a multi-year restructuring arsenic a contrarian standout successful the chemic sector, demonstrating resilience and disciplined execution. After years of bequest indebtedness and operational turbulence, the company’s 2025 results showcase a singular turnaround, with escaped currency travel surging 75% year-over-year to R12.6 billion, driven by borderline discipline, plus divestitures, and one-off windfalls specified arsenic the $4.3 cardinal Transnet colony and R2.9 cardinal biology liability reduction.

Turnover declined somewhat to R249 billion, but nett indebtedness is present down to $3.7 billion, importantly improving the equilibrium expanse and alleviating long-standing capitalist concerns. Sasol’s attack to ESG, including R723 cardinal successful c credits and expanding renewable capacity, illustrates a pragmatic strategy alternatively than an all-consuming obligation, allowing the institution to stay cash-generative portion positioning for the vigor transition.

Valuation metrics reenforce the contrarian appeal: SSL trades astatine EV/EBITDA of 3.1x and price/book of 0.4x, with implied upside of 55% to the median expert terms people of $9.73, and assertive scenarios projecting up to $25.43 per ADR. Forecasted escaped currency flow remains robust, with projections reaching R15.4–19.4 cardinal by 2028, supporting imaginable re-rating and shareholder returns done indebtedness simplification and dividends.

Despite short-term volatility from ESG and regulatory headlines, SSL’s disciplined superior allocation, borderline expansion, and operational improvements marque it a currency instrumentality poised for recovery. In a marketplace focused connected “transition risk,” Sasol stands retired arsenic an undervalued, high-upside opportunity, combining tangible fiscal results with a wide way to a wide valuation reset, making it a compelling prime for contrarian and value-oriented investors seeking some currency travel visibility and semipermanent upside.