Karooooo just reported Q2 FY2027 numbers and the stock barely flinched, up about 1% on the day. That is a muted reaction for a telematics and fleet software business putting up ZAR 1,640.2m in quarterly revenue and ZAR 286.8m in net income from ongoing operations.

The emotion in the price today looks more like a shrug than a verdict. Investors appear cautious, weighing a rich P/E of 29.7x and a share price above a discounted cash flow estimate against solid subscription momentum and profitability that still throws off cash, even with device inventory soaking up working capital.

Love Karooooo’s recurring revenue engine but uneasy about paying a 29.7x P/E for it? Compare that setup with our 35 high quality undervalued stocks to see…