The paper highlights three main engines that are expected to drive growth for CIEL:
• Hospitality: The spin-off of Sun Limited and Riveo enhances operational focus and efficiency and has already started to unlock value for shareholders as the combined share price of the two companies rose by nearly 30% at 31 January 2025 as compared to Sun’s share price at 30 June 2024. Both companies boast healthy balance sheets and are expected to generate strong operating margins given their prime position to take advantage of the promising outlook for the Mauritian hospitality sector.
• Textile and India: The long established and successful textile production business in India coupled with CIEL’s deep understanding of the Indian business environment should allow the group to expand into other areas and take advantage of the scalability, growth and cost advantages of the Indian economy.
• Unlocking Africa’s potential in Healthcare and Finance: Despite a more competitive environment in Mauritius, CIEL Healthcare reinforced its dominant position in the sector, capitalising on operational excellence. The group is focused on replicating the success achieved to new territories in Africa. Similarly, underpinned by BNI’s dominance in Madagascar, the group is expected to further penetrate the underbanked market and generate strong margins whilst containing NPL.
The report distinguishes itself by a detailed sum-of-the parts valuation of the underlying businesses, factoring in stronger growth trajectories, improved financial discipline, expansion strategies across key clusters. It also provides a detailed analysis of the key risks and uncertainties regarding its outlook and valuation.