As of August 2024, eight Nigerian stocks have delivered remarkable triple-digit Year-to-Date (YtD) gains, showcasing their resilience and strong performance in a volatile market environment.
The standout stocks 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 captured 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. The market’s slowdown, when compared to the 45.90% return achieved in 2023, underscores the need for sector-specific analysis as opportunities for gains still exist in specific stocks and sectors.
Company Highlights
- BUA Foods (+104.19% YtD): BUA Foods has emerged as a leader in the Consumer Goods sector, achieving a YtD gain of 104.19%. The stock hit a 52-week high of N394.90, up from N193.40 at the beginning of the year. The company reported a 25.41% growth in pre-tax profit in H1 2024, with a 37.43% increase in earnings per share (EPS). Despite a high P/E ratio of 48x, BUA Foods’ robust earnings growth supports its upward trajectory, making it an attractive option for risk-averse investors.
- Geregu Power (+150.63% YtD): Geregu Power’s stock has surged 150.63% YtD, backed by a 24% rise in pre-tax profit to N30.2 billion in the first half of 2024. With a lower beta of 0.399 and a high P/E ratio of 87x, the stock’s strong financial performance offers both growth potential and stability, though its high valuation requires careful monitoring.
- Presco Plc (+151.50% YtD): Leading the Agricultural sector, Presco Plc has achieved a 151.50% YtD gain. The company’s net income grew by 18% 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 fueled its share price rally.
- Veritas Kapital (+272.97% YtD): Veritas Kapital’s stock soared by 272.97% YtD, supported by a 414% YoY surge in pre-tax profit to N5.8 billion in H1 2024. Despite a high price-to-sales ratio, the stock’s low beta and strong financial performance justify its rise, though potential overvaluation could pose risks.
- Julius Berger Plc (+319.77% YtD): Julius Berger saw its stock climb 319.77% YtD, underpinned by a 123.2% increase in pre-tax profit to N25.2 billion in H1 2024. The stock’s rally is backed by solid financial fundamentals, though high valuations suggest a need for caution.
- RT Briscoe (+429.85% YtD): RT Briscoe’s stock rose by 429.85% YtD, with a significant recovery in net income for H1 2024. Despite the impressive rally, concerns over negative valuation ratios and liquidity issues raise questions about the sustainability of these gains.
- Oando (+657.64% YtD): Oando recorded a staggering 657.64% YtD gain, making it one of the top performers on the NGX. The stock’s surge is supported by a turnaround in profitability and strategic acquisition, though certain financial ratios suggest areas for caution.
- Juli Plc (+1,646% YtD): Juli Plc posted an extraordinary 1,646% YtD gain, the highest on the NGX. The stock’s rally is driven by a significant turnaround in profitability, though high valuation ratios and concerns about financial stability warrant careful consideration.
These exceptional YtD gains reflect the strong financial performance and strategic developments of these companies, though investors are advised to consider broader market trends, valuation ratios, and potential risks when making investment decisions.
