Our opinion on the current state of GRANPRADE(GPL)Grand Parade Investments (GPL) is an investment holding company with interests primarily in the gaming industry. It is a BEE company that has been listed on the JSE since 2008. In recent years, GPL has shifted its focus, terminating its Dunkin' Doughnuts and Baskin Robbins franchises in February 2019 and exiting Burger King in February 2020. The company also sold its remaining 10% stake in Spur Corporation back to Spur in June 2019.
On 15th June 2022, GPL announced that it had unbundled its 9.28% shareholding in Spur, with shareholders receiving 1 Spur share for every 56 GPL shares they held on 10th June 2022, the unbundling record date.
In its results for the year ending 30th June 2024, GPL reported headline earnings per share (HEPS) of 19.2c, a significant increase from the 2.56c in the previous period. The company explained, "The considerable improvement in the earnings per share and headline earnings per share for the current reporting period is mainly due to the reduction of the costs of the restructuring transactions associated with the exit of the non-core investments of the Group in the prior year."
Technically, the share has been moving sideways since 2017, with resistance at 383c. Despite some upward movement in the last six months, the stock remains in a consolidation phase. In our view, it does not currently present a particularly interesting investment opportunity until it breaks through key resistance levels.
