As of August 2024, eight Nigerian stocks have achieved remarkable triple-digit Year-to-Date (YtD) gains, showcasing exceptional performance amidst market volatility. These top performers include Juli Plc, Oando Plc, RT Briscoe, Julius Berger (JBERGER), Veritas Kapital (VERITASKAP), Presco Plc, Geregu Power (GEREGU), and BUA Foods (BUAFOODS). Despite broader market fluctuations and a cooling trend from earlier highs, these stocks have attracted significant investor interest.
Market Overview The NGX All-Share Index (NGXASI) closed at 96,579.54 points on August 30, 2024, reflecting a YtD gain of 29.16% and a market capitalization of N55.49 trillion. Although the index’s growth has slowed from 39.84% at the end of Q1 2024 to 29.16% by August, it remains in positive territory, highlighting the resilience of the Nigerian stock market.
Historically, the NGXASI achieved a 45.90% return in 2023, suggesting that while 2024 has seen a slowdown, the market continues to offer opportunities for gains, particularly in select stocks and sectors.
Company Highlights
BUA Foods (+104.19% YtD): BUA Foods has emerged as a leader in the Consumer Goods sector, with a YtD gain of 104.19%, reaching a 52-week high of N394.90 from N193.40 at the beginning of the year. The company reported a pre-tax profit growth of 25.41% to N137.189 billion in H1 2024, with EPS growing by 37.43% to N7.27. Despite a high P/E ratio of 48x, the robust earnings growth supports its rally, and the stock’s low beta of -0.065 indicates stability, appealing to risk-averse investors.
Geregu Power (+150.63% YtD): Geregu Power’s stock surged by 150.63% YtD, building on a 168% increase last year. The company reported a 24% rise in pre-tax profit to N30.2 billion for H1 2024, with EPS at N8.01. Despite a high P/E ratio of 87x, its strong financial performance and lower beta of 0.399 suggest a balance of growth and stability.
Presco Plc (+151.50% YtD): Presco has become the top performer in the Agricultural sector, with a YtD gain of 151.50%. The company’s net income grew by 18% to N38.877 billion in H1 2024, surpassing the entire 2023 figure. With a P/E ratio of 8.57x and a dividend yield of 5.42%, Presco’s strong profitability and attractive valuation have supported its share price rally.
Veritas Kapital (+272.97% YtD): Veritas Kapital’s share price increased by 272.97% YtD, driven by a 414% YoY surge in pre-tax profit to N5.8 billion in H1 2024. With a return on equity of 40% and a low beta of 0.344, the stock’s financial performance has justified its price increase. However, potential overvaluation could limit further gains.
Julius Berger Plc (+319.77% YtD): Julius Berger’s stock surged by 319.77% YtD, underpinned by a 123.2% increase in pre-tax profit to N25.2 billion in H1 2024. With a P/E ratio of 15.77 and strong earnings growth, the stock’s rally is supported by solid financial fundamentals, although high valuations warrant careful monitoring.
RT Briscoe (+429.85% YtD): RT Briscoe’s share price soared by 429.85% YtD, reflecting a significant recovery with a net income of N509.01 million for H1 2024. Despite the impressive rally, concerns about negative valuation ratios and potential liquidity issues raise questions about the sustainability of these gains.
Oando (+657.64% YtD): Oando recorded a YtD gain of 657.64%, making it one of the top performers on the NGX. The company’s turnaround, marked by a pre-tax profit surge to N104.1 billion in 2023 and the acquisition of Nigerian Agip Oil Company, has significantly bolstered investor confidence. Despite a low price-to-earnings ratio of 13.55, some financial metrics suggest caution.
Juli Plc (+1,646% YtD): Juli Plc achieved a staggering 1,646% YtD gain, the highest on the NGX. The company’s remarkable turnaround, with a profit of N3.42 million in H1 2024, has driven its share price rally. However, the high P/E ratio of 120.79 and negative price-to-book ratio of -3.37 raise concerns about potential overvaluation and financial stability.
In Conclusion, the exceptional YtD gains of these eight Nigerian stocks highlight significant opportunities in a challenging market environment. While strong financial results and strategic developments have driven their rallies, investors are advised to consider broader market trends, valuation ratios, and potential risks when making investment decisions.
