Karooooo Ltd. (KARO) Stock Price & How to Invest

Karooooo Ltd, headquartered in Singapore and founded in 2001, operates the Cartrack platform, a mobility software-as-a-service business that connects vehicles and assets for fleet management, stolen-vehicle recovery, video telematics, and logistics. Its products span Fleet Telematics for real-time operations, LiveVision video for risk management, MiFleet business intelligence, and Karooooo Logistics for last-mile delivery. The company reached roughly 2.7 million subscribers as of its Q4 FY2026 report, adding a record ~93,755 net subscribers in the quarter, with South Africa remaining its largest market alongside a growing footprint across Asia, Europe, and the Middle East.

The investment picture centers on durable, high-margin recurring revenue paired with strong cash generation. FY2026 revenue rose about 20% to roughly ZAR5.48 billion (~$300M) and annual recurring revenue reached about $325M, while adjusted free cash flow grew ~90% to ZAR809 million and the company raised its dividend ~20% to $1.50 per share. Management guided FY2027 Cartrack subscription revenue growth of 18% to 24%. Against that, KARO carries a premium multiple (about 31x trailing and 22x forward earnings as of October 2026), a signaled outlook for contracting gross margins as it invests, and meaningful concentration risk in the South African rand and economy.

The first quarter of FY2027 (ended May 31, 2026) kept that pace: revenue rose about 22.5% to roughly ZAR1.56 billion and net income reached about ZAR294 million, with EPS of about ZAR9.53 beating the roughly ZAR8.71 consensus after a miss in the prior quarter. Trailing twelve-month revenue is now about ZAR5.77 billion and net income about ZAR1.02 billion. The stock is up about 37% in 2026 at roughly $61, though it has slipped about 8.5% over the past month, and several insiders, including the CEO (31,279 shares for about $2.0 million), sold shares in August. Second-quarter FY2027 results are scheduled for October 19, 2026, with consensus near ZAR9.43 of EPS on about ZAR1.6 billion of revenue.

The single largest risk is concentration in South Africa, which exposes reported results to rand volatility and to the country's economic and security conditions; rand appreciation created a currency headwind in FY2026. Management has signaled contracting gross margins as it invests in growth, so costs and competition could compress profitability faster than revenue scales. International expansion puts Karooooo against well-funded telematics and fleet-software rivals, where it is less established. The Nasdaq listing represents a company whose operations and cash flows are largely emerging-market, adding currency-translation and governance considerations. Insider selling in August 2026, including about $2.0 million of shares sold by the CEO, came after a sharp run in the stock. Finally, a premium software multiple (about 31x trailing earnings) leaves limited room for disappointment if subscriber growth or margins fall short of guidance; the fourth quarter of FY2026 already brought an EPS miss (about ZAR7.18 against roughly ZAR8.66 expected).

5 analysts publish price targets on KARO, averaging $73.67 against a $60.38 price as of October 2026, or +22.0%. The published targets run from $65.11 to $80.05, a narrow spread, and the ratings split 5 buy, 1 hold, 0 sell. Over the last six months there have been 4 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full KARO forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Karooooo Ltd.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Accelerating subscription growth. Cartrack subscription revenue growth reaccelerated to roughly 19% in FY2026 from about 15% the prior year, with record fourth-quarter net subscriber additions near 93,755. The most optimistic published target, $80.05, assumes this works close to its best case.

The case against. The single largest risk is concentration in South Africa, which exposes reported results to rand volatility and to the country's economic and security conditions; rand appreciation created a currency headwind in FY2026. The most pessimistic target, $65.11, is roughly what KARO is worth if this bites instead.

Read the full bull and bear case on KARO, including what would have to change to break either one. Walnut is not an investment adviser.

No. Karooooo Ltd. (KARO) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Karooooo Ltd.'s investor relations page or your broker.

• Revenue (TTM): ~ZAR5.77B (Q1 FY2027 +22.5% YoY)
• Revenue (FY2026): ~ZAR5.48B (~$300M)
• Net income (TTM): ~ZAR1.02B (~18% net margin)
• EPS (Q1 FY2027): ~ZAR9.53 vs ~ZAR8.71 expected
• Market cap: ~$1.9B
• P/E (trailing / forward): ~31x / ~22x
• Dividend / yield: ~$1.50 per share / ~2.4%

KARO trades at about 31x trailing and 22x forward earnings at roughly $61 a share, a premium that some analysts still frame as a discount to faster-growing software peers given its cash generation and roughly 68% gross margin. Trailing revenue is about ZAR5.77 billion and free cash flow about ZAR750 million, and analysts expect FY2027 EPS of about ZAR39.46, up about 21%. Reported figures are heavily influenced by the rand-to-dollar exchange rate, so USD-denominated results can diverge from local-currency growth; the October 19, 2026 report is the next test of the multiple.

Other names that sit close to KARO: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get KARO exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so KARO sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where KARO fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

KARO offers accelerating subscription growth and real free cash flow, but its concentration in South Africa and a premium software multiple (about 31x trailing and 22x forward earnings after a strong 2026) are what a buyer is underwriting.

Whether KARO is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is KARO a buy or a sell?, and where the stock could go from here in the KARO stock forecast.

For income investors, whether KARO pays a dividend and how the payout looks is covered in does KARO pay a dividend? And to weigh KARO against a peer, read the full side-by-side comparisons: KARO vs VZ and KARO vs BULL.