Grindrod (GND) is an international freight and financial services company operating in twenty-eight countries. The significant change in the company's structure came in mid-June 2018, when it unbundled and separately listed its shipping division, Grinship (GSH), leading to a notable drop in its share price. Post-divestiture, Grindrod's focus sharpened on its freight and financial services divisions. Among its key assets are the North-South railway line stretching from Beitbridge to Victoria Falls and port terminals located in Richards Bay, Natal, Walvis Bay in Namibia, and Maputo.
The financial services division, which constitutes about 30% of the business, is seen as a growth area. Grindrod is particularly keen on integrating its retail banking division with small and medium-sized enterprises. However, challenges persist, notably the conflict in northern Mozambique and flooding in Natal, which temporarily halted operations at five sites.
For the fiscal year ending 31st December 2023, Grindrod reported an 18% increase in headline earnings per share (HEPS), a 13% rise in net asset value (NAV) to 1368c per share, despite a 23% drop in revenue. This financial performance was bolstered by interest earned on the proceeds from the sale of Grindrod Bank in 2022, alongside earnings from various initiatives totaling R45.3 million in the current year, compared to R167.1 million in 2022.
Technically, Grindrod's share price has shown signs of recovery, forming a rising triple-bottom pattern and entering a new upward trend. The recommendation was to wait for a break through the long-term downward trendline before purchasing shares. This break occurred on 15th July 2020 at a price of 340c, and the shares have since appreciated significantly to 1275c, marking a 275% gain in over three years.
The global economic recovery and a steady increase in international trade are expected to benefit the company. Given these factors, Grindrod's shares are still considered to offer value to investors.
The financial services division, which constitutes about 30% of the business, is seen as a growth area. Grindrod is particularly keen on integrating its retail banking division with small and medium-sized enterprises. However, challenges persist, notably the conflict in northern Mozambique and flooding in Natal, which temporarily halted operations at five sites.
For the fiscal year ending 31st December 2023, Grindrod reported an 18% increase in headline earnings per share (HEPS), a 13% rise in net asset value (NAV) to 1368c per share, despite a 23% drop in revenue. This financial performance was bolstered by interest earned on the proceeds from the sale of Grindrod Bank in 2022, alongside earnings from various initiatives totaling R45.3 million in the current year, compared to R167.1 million in 2022.
Technically, Grindrod's share price has shown signs of recovery, forming a rising triple-bottom pattern and entering a new upward trend. The recommendation was to wait for a break through the long-term downward trendline before purchasing shares. This break occurred on 15th July 2020 at a price of 340c, and the shares have since appreciated significantly to 1275c, marking a 275% gain in over three years.
The global economic recovery and a steady increase in international trade are expected to benefit the company. Given these factors, Grindrod's shares are still considered to offer value to investors.
Top 3 & 4 companies on our winning shares list.
Snapshot: 4/2024
#3 - MIXTEL- MIX- Added 2023-12-28 - 86.44% Gain since added
#4 - HARMONY - HAR- Added 2023-11-16 - 70.15% Gain since added
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Snapshot: 4/2024
#3 - MIXTEL- MIX- Added 2023-12-28 - 86.44% Gain since added
#4 - HARMONY - HAR- Added 2023-11-16 - 70.15% Gain since added
Full list available to PDSnet subscribers only.