Logistics companies are no doubt the .backbone of an economy, but stocks in this industry don’t always get the same attention as the banking stocks do, partly because of the monotonous nature of their business – accept parcels from customers or SMEs and send to recipients. With the unexpected disruption of supply chains and the way we buy and sell, this sector is a must-watch for smart investors looking for the next stocks to buy in Nigeria,
My Sure Pick – RedStar Stock – N3.63
Red Star Express Plc engages in the provision of courier services, mail management services, freight services, logistics, warehousing, and general haulage. It operates through the following segments: Courier, Freight, Logistics, and Support Services. The Courier segment involves in express delivery of documents and parcels. The Freight segment includes the clearing and forwarding of goods. The Logistics segment refers to warehousing and chain distribution services. The Support Services segment relates to mailroom management and other delivery services.
I had placed a call on Redstar plc sometimes ago on my Whatsapp group – Nigeria Stock Investors -when the stock was traded for N2.74. This has yielded a return of 32% when you check the market price as of this analysis.
Note: My Whatsapp group is open to premium subscribers only. Reach me on 08084219399.
In its recent financials, the company reported a 6% growth in turnover to N10.6b and lower operating expenses that helped boost its bottom line figure by 13.9% to N531m (up from N466m recorded in the previous year).