Published: 02 July 2025

Prominent businessman Zed Koudounaris has once again increased his stake in Innscor Africa Limited, Zimbabwe's largest food producer, purchasing shares worth US$256,143 in a move echoing a similar acquisition he made around the same time last year.

Koudounaris bought the latest tranche of shares at approximately US$0.47 apiece, boosting his personal holding in the company to 109,189,308 shares. This adds to the position held by his investment vehicle, ZMD Investments, which already owns close to 20% of Innscor.

The billionaire investor made a similar move in 2023, when he acquired Innscor shares worth US$258,153 - a sign of sustained confidence in the long-term fundamentals of the diversified conglomerate.

Koudounaris' influence spans across Zimbabwe's consumer goods landscape. In addition to Innscor, ZMD Investments is the largest shareholder in Axia, Padenga and Simbisa - all former Innscor subsidiaries that have since been listed and operate as independent entities.

His latest investment comes as stockbroking firm IH Securities has issued a bullish outlook on Innscor, forecasting a 22.1% increase in revenue to US$981.77 million this year, supported by strong volume performance.

"We anticipate EBITDA margin to increase to 10.2% on account of a gradual improvement in efficiencies," IH said in its recent research note.

According to IH, Innscor is currently undervalued, trading at a price-to-earnings (P/E) ratio of just 6.3x - significantly below the industry average of 13.8x. Its enterprise value-to-EBITDA (EV/EBITDA) ratio stands at 3x, compared to a sector average of 7.9x, suggesting further undervaluation.

"Innscor has a target price of US$0.75, suggesting a potential upside of 60% at current levels. We therefore place a BUY rating," IH stated.

On Tuesday, Innscor shares closed at US$0.49, indicating room for potential growth, particularly as market sentiment shifts in response to macroeconomic reforms and stability in the currency regime.

With Koudounaris continuing to back Innscor through substantial equity purchases, investor confidence in the company's future prospects appears to be on solid footing.
- newZWire