Anthony Clark reveals his small-cap stock picks

Anthony Clark revealed that his top three JSE shares are Argent Industrial, KAL Group, and Reunert in a recent JSE SA Stock Picks event.

Clark has been an investor and analyst for over three decades, specialising in small- to mid-cap industrial, agricultural and food stocks.

In 2023, he was rated Financial Mail’s top analyst for financial and industrial small and medium market cap companies.

Since arriving from the UK in 1996, he’s worked for Standard Bank Equities, Genbel Securities, Nedbank Securities, Barnard Jacobs Mellet and stockbroker Vunani Securities.

Five years ago, he founded Small Talk Daily Research and became an independent analyst. He has consistently been rated in the top five small- and mid-cap analysts by the Financial Mail since 2009.

Argent Industrial

The smallest company on Clark’s list, Argent Industrial, is a South Africa-based holding company with a market value of R981.39 million.

According to Clark, the company maintains unusually stable, strong growth for its small size. Argent’s share price has risen 91.74% in the past three years and 263.45% in the past five years.

Clark said Argent has turned South Africa’s deteriorating steel industry into an opportunity by selling off low-margin steel assets and recycling that money into material buybacks.

Argent is a rand hedge, with 75% of the company’s profits derived from offshore operations. This means investors are protected from shocks to the South African economy.

Despite the share price rising 20.59% year to date, it is still a cheap small-cap, with a price-to-earnings ratio of 3.99.

KAL Group

KAL Group – formerly Kaap Agri – is a retailer specialising in agriculture, fuel and related markets. 

In the last two and a half years, the company has moved into fuel stations, providing a range of convenience store and food products at fuel stations across the country.

A significant portion of the KAL Group’s profits come from supplying Western Cape farmers with fertiliser, packaging material and other basics. According to Clark, this market remains robust.

The company’s revenue grew by 42.7% in 2023. The group has also had a consistent earnings compound growth rate of 15% annually for the last 10 years.

With a price-to-earnings ratio of 6.27, the company’s share price is down 6.17% this year to date.


Reunert is the largest company on Clark’s list, with a market cap of R11.87 billion.

Predominantly known for its cabling business, Reunert manages a portfolio of electrical engineering, information communication technologies and applied electronics businesses.

In the ongoing effort to fix South Africa’s energy market, the government will likely invest significantly in energy upgrades and infrastructure – especially overhead power lines. Reunert is well-placed to benefit from this investment.

Clark also highlighted Reunert’s growing renewable energy division, which provides long-term growth potential to the company, given the global transition away from fossil fuels.

Reunert’s share price has risen 7.27% this year to date, with a price-to-earnings ratio of 10.91.