Our opinion on the current state of GND

Grindrod (GND) is an international freight and financial services company which operates in twenty-eight countries. In mid-June 2018, Grindrod unbundled and separately listed its loss-making shipping division (Grinship - GSH). This accounts for the "cliff" in the share price at that time. The company is now focused on its two remaining divisions - freight and financial services. Grindrod owns the North-South railway line from Beitbridge to Victoria Falls as well as port terminals at Richards Bay, Natal, Walvis Bay, Namibia, and Maputo. The company is positive on the growth of its financial services division which is about 30% of the business. The company is focused on getting its retail banking division involved with small and medium sized businesses. The conflict in northern Mozambique is a problem for this share. The flooding in Natal caused five of their sites to be suspended for several weeks. In its results for the six months to 30th June 2023 the company reported revenue up 32% and headline earnings from core operations up 26%. The company's net asset value (NAV) increased 10% to 1333c per share. The company reported, "...continued strong demand for Grindrod’s logistics solutions through its cargo terminals infrastructure footprint and complementary logistics service offerings". Technically, the share has completed a rising triple-bottom and has risen off this base into a new upward trend. We recommended waiting for an upward break through its long-term downward trendline before buying. That break came on 15th July 2020 at a price of 340cc. The share has since moved up strongly to 1040c. The company should benefit directly from the recovery in the world economy and the steady rise in international trade. We believe that this share still represents value.