Investors can get South Africa’s most iconic company for a steal 

At its current valuation, Sasol presents a bargain for South African investors as the company is set to continue benefiting from the US-Iran war.

Even after the war ends, Sasol is expected to benefit as energy costs remain elevated and countries need to rebuild their fuel and oil reserves.

This is the view of Rand Swiss wealth specialist Viv Govender, who told BusinessDayTV that Sasol looks like a “steal” at its current share price.

Sasol is one of South Africa’s most important companies, playing a critical role in both the domestic and international industrial landscape.

The company is a world leader in proprietary Fischer-Tropsch technology, converting coal and natural gas into high-value liquid fuels and chemical products.

Given South Africa’s abundant natural coal reserves, Sasol’s synthetic fuel operations in Secunda and Sasolburg have historically provided a buffer against global oil shocks.

It is also one of the largest companies in the country, currently listed on the JSE with a market capitalisation of R149.91 billion.

In its last full-year results, covering the year through June 2026, Sasol reported turnover of R272.12 billion, up 9.24% from the 2025 financial year.

The group’s earnings for the year nearly doubled, rising by 87.13% to R14.46 billion.

Its basic earnings per share increased by 79.15% to R18.99, while adjusted EBITDA rose 17% to R61 billion.

Sasol said this was driven by a combination of management actions and a more supportive macroeconomic environment during the final quarter of the financial year.

It emphasised the impact of higher oil prices, with the average Brent crude price rising by 7% over the year. As a result, Sasol saw a more than 100% increase in its refining margins.

It should be noted that this average Brent crude oil price increase was calculated at the end of Sasol’s financial year, in June 2026.

Since then, oil prices have risen even further, now standing at $92.62 per barrel, up from $73 at the end of June.

Analyst opinion

Govender chose Sasol as his stock pick in an interview with BusinessDayTV on 3 November 2026, calling it a “steal” at its current price.

When Govender made this pick, Sasol shares were trading at R265.50. It has since fallen to R228.81 on Wednesday, 11 November.

Govender explained that Sasol has been benefiting from higher oil prices and, consequently, higher fuel prices.

In South Africa, petrol and diesel prices have risen to record highs since the outbreak of the US-Iran war.

In November, petrol prices dropped slightly to between R29 and R30.24 per litre, while diesel is going for between R29.98 and R31.60 per litre.

Govender acknowledged that petrol and diesel prices are expected to drop due to the National Treasury’s temporary fuel levy relief that will run from November 2026 to January 2027.

However, he argued that underlying market conditions suggest fuel prices will still remain above normal levels for some time, even with the relief.

This is due to the issues surrounding refineries, transport, and the need for countries to rebuild their reserves

Govender expects that the geopolitical tensions surrounding these market strains are unlikely to end soon, which will keep fuel and oil prices elevated.

“If you look at the underlying market – even if the war were to end tomorrow – we would likely see petrol prices and diesel prices remain above normal levels for quite some time,” he said.

This makes Sasol an attractive investment at its current price, trading at a price-to-earnings ratio of 12.2.

“I think Sasol looks like a steal at the moment, and I don’t think this war is going to end tomorrow,” Govender said.

On 11 November 2026, Sasol’s share price was up 119.32% year-to-date, despite having dropped by 9.69% over the past month.