Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 30 Apr, 25 | GRAB | Buy | USD 4.66 | USD 4.94 | USD 5.2 | 1 day | 11.6% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
Adjusted Free Cash Flow improved from negative $6 million to positive $138 million, a $144 million YoY improvement
Adjusted EBITDA increased 224% YoY to $90 million, marking Grab’s highest quarterly level to date
Financial Services Segment Adjusted EBITDA remains negative at $(26) million, although improved from the previous year’s loss of $(36) million
On-Demand GMV per MTU declined 3% YoY to $124, indicating potential softness in spending per user
Grab faces a key investment risk in its continued reliance on high incentive spending and unprofitable segments like Financial Services, which could pressure margins and delay consistent profitability if monetization strategies do not scale effectively
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 4.66 | 4.2 | 4.94 | 5.2 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strong Revenue and GMV Growth Across Core Segments
Grab Holdings Limited reported robust financial results for the third quarter ended September 30, 2024, with revenue increasing by 17% year-over-year (YoY) to $716 million, or 20% on a constant currency basis. This growth was supported by solid performance across all segments, notably On-Demand services, where Gross Merchandise Value (GMV) rose by 15% YoY (18% constant currency) to $4.7 billion. Monthly Transacting Users (MTUs) also grew 16% YoY to 41.9 million, reflecting a continued expansion in user engagement across the platform.
Profitability Improvement and Operational Leverage
For the second time, Grab posted a quarterly profit of $15 million, compared to a loss of $99 million in Q3 2023, marking a $114 million YoY improvement. Adjusted EBITDA reached a record high of $90 million, improving by $62 million YoY, driven by improved segment-level profitability and reduced regional corporate expenses. Operating loss narrowed significantly to $38 million, a 59% YoY improvement, reflecting the company’s disciplined cost management and revenue scaling.
Segment Performance: Deliveries and Mobility
In the Deliveries segment, GMV increased 12% YoY to $2.97 billion, and revenue grew 13% to $380 million. Segment Adjusted EBITDA rose 60% YoY to $55 million. Key growth drivers included increased transaction volume and higher MTUs, as well as growing contributions from Advertising, which accounted for 1.6% of Deliveries GMV. Saver Deliveries continued to enhance operational efficiency, now comprising 32% of transactions. The Mobility segment also performed strongly, with GMV up 20% YoY to $1.69 billion and revenue up 17% to $271 million. High Value Mobility rides contributed significantly, growing GMV by 30% YoY, while active driver supply rose 13% YoY.
Financial Services Expansion and Monetization
Grab’s Financial Services segment demonstrated strong growth momentum, with revenue rising 34% YoY to $64 million, supported by expanded lending and banking operations. The loan portfolio grew 81% YoY to $498 million, and customer deposits in digital banking tripled to $1.1 billion. Despite reporting a segment Adjusted EBITDA loss of $26 million, this represents a 27% YoY improvement, reflecting improved monetization and overhead cost reductions. Loan disbursements totaled $567 million for the quarter, up 38% YoY.
Cash Flow and Liquidity Position
Operating cash flow for Q3 2024 was $338 million, increasing $17 million YoY. Adjusted Free Cash Flow turned positive at $138 million in the quarter, a substantial $144 million YoY improvement. On a trailing 12-month basis, Adjusted Free Cash Flow reached $76 million. The company’s cash and liquidity position remained strong, with total liquidity of $6.1 billion and net cash liquidity of $5.8 billion, driven largely by growth in digital bank customer deposits.
Upward Revision to Full-Year Guidance
Given the strong third-quarter performance, Grab raised its full-year 2024 revenue guidance to a range of $2.76 billion to $2.78 billion (previously $2.70 billion to $2.75 billion), implying 17% to 18% YoY growth. The company also increased its Adjusted EBITDA outlook to $308 million–$313 million (previously $250 million–$270 million), while reaffirming expectations of positive Adjusted Free Cash Flow for the full year. Management remains confident in the long-term Southeast Asian growth outlook and is focused on scaling responsibly with operational discipline.
Techncial Commentary:
GRAB's stock price found support at key levels and gradually moved higher, forming a swing high on the daily chart, suggesting the potential for further upward movement. The 14-period RSI is currently above the midpoint, reinforcing a positive outlook. Moreover, the stock is trading above its 21-day and 50-day Simple Moving Averages, which further enhances this optimistic perspective. Overall, these factors point to a generally favorable outlook.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Grab Holdings Ltd. (NASDAQ: GRAB) at its current market price of USD 4.66 as of April 29, 2025 (6:35 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GRAB Grab Holdings Ltd |
-0.11 2.23% | 4.83 | - | - | 5.85 | 2.14 | 4.05 | -43.058 |
| CRM Salesforce.com Inc |
-0.95 0.33% | 287.11 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
1.60 0.53% | 301.00 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
1.21 0.40% | 300.48 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
-1.615 0.24% | 669.54 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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