Is Nairobi Business Ventures stock a good investment?
By Nairobi Stocks Review
Nairobi Business Ventures stock is listed on the Nairobi Securities Exchange under “NBV” ticker symbol. The company was founded in 2012 and went public in 2016. If you are trying to identify the best companies to invest in in Kenya, you might be wondering if Nairobi Business Ventures stock is a good investment.
In this Nairobi Business Ventures stock review, you will find out who owns the company, what it does and the plans it has for the future. Moreover, you will see the company’s latest financial results and stock performance. And if you conclude that Nairobi Business Ventures is a good investment, you will see how to buy NBV shares.
Who owns Nairobi Business Ventures?
In 2020, a Dubai firm called Delta International FZE made a huge investment in NBV with the goal of turning around its business. The largest shareholder in NBV currently is Delta International FZE with a stake of 84%.
What does Nairobi Business Ventures do?
The company started out as a shoe vendor. In addition to operating its own retail outlets, NBV also ran a wholesale division through which it supplied other businesses. However, the company is shifting away from the shoe business after learning the operation is not as profitable as it expected.
What are Nairobi Business Ventures’ plans?
The company is in the process of transforming itself into a diversified conglomerate. The shoe business aside, NBV plans to go into cement production, aircraft servicing and heavy commercial vehicles maintenance.
In the cement business, NBV plans to build factories in Nairobi and Mombasa. It expects to spend Ksh15 billion on the project. It aims to build a capacity to produce more than 1.2 million tonnes of cement every year. NBV anticipates strong demand for cement as Kenya continues to make huge infrastructure developments.
NBV is entering the aviation sector with the acquisition of Aviation Management Solutions (AMS) and Air-Direct Connect (AirDC). AMS has a hangar at the JKIA where AirDC provides repair and maintenance of cargo and passenger planes. NBV is acquiring AMS and AirDC for Ksh3 billion.
NBV is acquiring Delta Automobile to enter truck maintenance business. Delta is among the leading heavy commercial vehicle maintenance providers in Kenya. It specialises in Renault and Volvo truck brands. Delta generated Ksh500 million in revenue in 2020 and it continues to grow. After acquiring Delta, NBV plans to set up service stations across East Africa. It aims to replicate a truck servicing business model that has been successful in Europe.
The company also has a trading business that includes the sale of steel and other commodities. It plans to continue the trading business as it ventures into other operations.
Nairobi Business Ventures’ latest financial results
The company reported revenue of Ksh45.4 million for its financial year ended March 2021. That compared to zero revenue in the previous year. It made a profit of Ksh32.9 million compared to a loss of Ksh39.4 million in the previous year. The company ended the year with Ksh21 million in cash.
Nairobi Business Ventures stock performance
NBV stock has soared as the company works on the turnaround from the shoe business to cement manufacturing, aircraft maintenance and truck servicing. NBV shares entered September 2021 at about Ksh6, implying gains of more than 1,800 percent over the past year. To put that into perspective, if you invested Ksh50,000 in NBV stock around September 2020, you would be having Ksh950,000 now.
How to buy NBV shares
If you want to buy Nairobi Business Ventures shares, you will need to open a CDS account. Once you set up the account, you will decide the amount of shares you want to purchase and place your order. Remember that the minimum number of shares you can buy is 100 shares. You may be able to buy NBV shares online if you choose the right stockbroker. (Read How to open a stock trading CDS account in Kenya).