GRAB - Grab Holdings: Strong Market Leadership Is Fending Off Competitors

2024-05-23 06:13:06 ET

Summary

• Grab is a Southeast Asian super app that is a market leader in mobility and delivery segments, with a strong moat and potential for long-term profitable growth.
• In 1Q24, Grab's mobility business delivered GMV growth of 27% YoY, implying that it is taking market share away from its closest competitor, Gojek.
• Similar to the mobility segment, the 19% GMV growth for its delivery business implies it is taking market share away from its competitor, Foodpanda.
• The Company's financial services segment, though still in its early stages of development, has the potential to achieve strong revenue growth and robust EBITDA margins after its launch DigiBank in Indonesia.
• Coupled with a potential upside of 14%, I rate GRAB a "buy"

Overview and Investment Thesis

Grab Holdings Limited (GRAB), one of Southeast Asia's largest super apps, alongside Sea Limited ( SE ) and Gojek, encompasses various business segments, including mobility, delivery, and financial services. The super app is designed to offer a comprehensive range of essential services to meet the diverse needs of customers across the regions....

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