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Grindrod Limited. JSE: GND

Grindrod Limited shares

Background of Grindrod

  • Grindrod Limited is a holding company with a history dating back to 1910, when Captain John Grindrod established Grindrod & Company as a clearing and forwarding agency in Durban.

  • Today, the company is listed on the Johannesburg Stock Exchange (JSE) and has grown into a highly respected business in South Africa. Through subsidiaries, joint ventures and associates, the company operates in three divisions: Freight Services, Shipping and Financial Services.

  • The Freight Services division covers terminal and port operations, warehousing and storage, clearing and forwarding, road transportation, rail solutions, ships agencies and stevedoring. Grindrod Shipping is based in Singapore, trading under brands Island View Shipping and Unicorn Shipping, and covers both the dry bulk and liquid sectors. Meanwhile, Grindrod Bank offers a portfolio of niche financial services for sale to private, corporate and institutional investors.

  • Grindrod has a footprint in 37 countries around the world, employing more than 7500 people. The group has a JSE market cap of R10 billion.

Grindrod Shares Growth Driver

  • Grindrod took a massive hit when shipping markets plummeted in 1999, recording a loss of R66 million, with Grindrod share price plummeting to 20 cents

  • By managing to buy ships in a depressed market, the group was able to take advantage of the shipping boom from 2002 to 2008. JSE market cap grew by 120 times in less than 10 years and by 2008 Grindrod reported a record profit of R2.2 billion. The financial crisis brought more troubles, but through long-term shipping contracts and diversification into freight and trade, Grindrod weathered the worst of the storm. The latest economic downturn has again been devastating for the group, with Grindrod share price plunging from a high of R28 in mid-2014 to R11.63 by mid-2016.

  • The group suffered a plunge from R1 billion net profit in 2014, to a loss of R1.3 billion in 2015. The slide has been attributed to a perfect storm of factors, including weak commodity markets and dry-bulk shipping rates, reduced customer demand in the rail sector and the ongoing drought which impacted business from the agricultural sector. These factors were partially offset by strong performances in the tanker businesses due to lower oil prices and an increase in transportation of petroleum products, and also in the ship operating businesses. The financial services business also increased earnings by 47%.

Grindrod Group Investor Tip

  • Whilst Grindrod’s financial data makes for troubling reading, the company is still in a relatively stable position, with total assets of more than R36 billion and no net debt. The business is cash-generative and has an ungeared balance sheet which makes it well positioned to develop key capital projects and capitalise on opportunities.

  • The long-term buy in of major shareholders such as Remgro and the Public Investment Corporation is also cause for optimism. The company has forecast that margins will remain under pressure in line with weak commodity prices and dry-bulk shipping rates. But the live online stocks chart shows that Grindrod share price is currently half of its book net asset value of R28.50, meaning that they could be a bargain buy in anticipation of improved trading conditions.

Grindrod Major Shareholders

Remgro Ltd., Public Investment Corporation, Newshelf 1279, Old Mutual Investment Group, Brimstone Investment Corporation.

  • Sector

    Industrials

  • Industry

    Transportation & Logistics

  • Sub industry

    Marine Shipping

How to buy Grindrod Group Shares

  • Grindrod : How to buy Grindrod Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Grindrod Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Grindrod Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Grindrod Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Grindrod Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
  • Buy Shares with Confidence

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<a href="https://www.sashares.co.za/grinrod-shares">Credits: SA Shares™</a>
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