Investment opportunities seen in Sri Lankaâ€™s logistics firms
ECONOMYNEXT – Sri Lanka’s logistics businesses offer attractive investment opportunities both among specialist firms as well as among conglomerates, Dumith Fernando, chairman of stock brokers Asia Securities, said.
“We feel there’s a great deal of investment opportunity not just in single pure-play logistics companies but in the sector and in conglomerates who have fairly large logistics businesses such as Hayleys and Aitken Spence,” he said.
A new analysis by Asia Securities of the logistics sector estimates that the entire market capitalisation of the big firms is potentially smaller than the valuation of their logistics businesses alone, Fernando told a forum where the study was presented.
Big chunks of the business value of conglomerates like John Keells Holdings and Hemas Holdings already come from their logistics sector, he said.
“We should not shy away from logistics just because there aren’t many pure play companies except Expolanka.
“The maritime logistics sector probably provides one of most counter-cyclical and stable industries we have,” Fernando said.
Logistics was one sector that had not been affected too badly by the present political crisis.
There are other firms like the Pickme ride hailing firm, a technology platform that has potential to expand, which were also interesting investment opportunities, Fernando said.
“Companies like Pickme are not just ride sharing firms, not alternatives to taxis, but companies that are platforms that provide the ability to optimise underused assets whatever they may be.
”This is about companies that touch everyone of us every single day in ways we don’t even think about as logistics companies. We think it is a growth industry.”
(COLOMBO, 13 December 2018)