PSG’s Piet Mouton on outlook for PSG Alpha, why Capitec is still a long term buy

PSG Group, a South African investment powerhouse, has been making waves in the market with its impressive financial performance. The company's share price, however, took a slight dip of almost 2 per cent after reporting its sum-of-the-parts value at R329.73 per share as of April 18th. Despite this, PSG's CEO, Piet Mouton, remains optimistic about the group's outlook and growth prospects. During a recent interview with CNBC Africa, Mouton discussed PSG's standout asset, Capitec, and the future potential of PSG Alpha, the company's incubator for emerging businesses. Capitec, known for its innovative banking model, continues to attract customers with its competitive pricing and robust product offerings. Mouton emphasized Capitec's ability to outperform traditional brick-and-mortar banks, as well as the new digital disruptors in the market. He highlighted Capitec's strong customer growth and market share expansion in the loan and funeral policy segments. While keeping an eye on emerging competitors, Mouton expressed confidence in Capitec's resilience and long-term prospects. Moving on to PSG Alpha, Mouton discussed the diverse investment portfolio within the incubator. Despite an initial dip in returns, Mouton remains bullish on PSG Alpha's potential to identify the businesses of tomorrow. He pointed out promising ventures such as Evergreen, a retirement unit project with ambitious growth plans, and Stadio, an education business poised for expansion with new degree offerings. Energy Partners, another PSG Alpha investment, has shown slower uptake but is gaining traction in the market. Mouton expressed optimism about the future of alternative energy sources and PSG's potential to establish a significant presence in the energy utility sector. As PSG Group continues to navigate market dynamics and invest in cutting-edge ventures, stakeholders are closely monitoring the company's strategic moves and growth trajectory.