As of August 2024, eight Nigerian stocks have shown remarkable performance by achieving triple-digit Year-to-Date (YtD) gains, despite the broader market’s fluctuations. These stocks have attracted considerable attention from investors due to their strong performance. The standout performers are Juli Plc, Oando Plc, RT Briscoe, Julius Berger, Veritas Kapital, Presco Plc, Geregu Power, and BUA Foods.
The Nigerian Exchange (NGX) All-Share Index (NGXASI) closed at 96,579.54 points on August 30, 2024, marking a YtD gain of 29.16%. Although this is a slowdown from the 39.84% gain recorded at the end of the first quarter of 2024, it is still a positive trend. In comparison, the NGXASI achieved a 45.90% return in 2023, indicating that while 2024 has been less robust, opportunities for gains still exist in certain sectors and stocks.
1. BUA Foods (+104.19% YTD):
BUA Foods has been a key player in the Consumer Goods sector, recording a 104.19% YTD gain, bringing its stock price to a 52-week high of N394.90, up from N193.40 at the start of the year. The company’s pre-tax profit grew by 25.41% in the first half of 2024, and earnings per share (EPS) rose by 37.43% to N7.27. Despite its high price-to-earnings (P/E) ratio of 48x, indicating a premium valuation, the company’s strong earnings growth supports its stock price rally.
2. Geregu Power (+150.63% YtD):
Geregu Power’s stock soared by 150.63% YtD. The company reported a 24% increase in pre-tax profit, reaching N30.2 billion in the first half of 2024, with an EPS of N8.01. Although its P/E ratio stands at a high 87x, the stock’s financial stability, indicated by its lower beta of 0.399, makes it attractive to investors seeking growth with reduced risk.
3. Presco Plc (+151.50% YtD):
Presco Plc emerged as the top performer in the Agricultural sector with a 151.50% YtD gain. The company’s net income grew by 18% to N38.877 billion in the first half of 2024. With a P/E ratio of 8.57x and a dividend yield of 5.42%, Presco’s strong profitability and appealing valuation have driven its share price upward.
4. Veritas Kapital (+272.97% YtD):
Veritas Kapital saw a significant increase of 272.97% YtD in its share price, starting at N0.37. The company experienced a 414% year-over-year surge in pre-tax profit to N5.8 billion for the first half of 2024, with a return on equity of 40%. While the stock’s low beta of 0.344 supports its stability, potential overvaluation could pose risks for future gains.
5. Julius Berger (+319.77% YTD):
Julius Berger’s stock gained 319.77% YtD, beginning at N43.00. The company reported a pre-tax profit of N25.2 billion in the first half of 2024, a 123.2% increase from the previous year. Despite the strong earnings growth, the stock’s high P/E ratio of 15.77 suggests that investors should closely monitor its valuation.
6. RT Briscoe (+429.85% YTD):
RT Briscoe’s share price surged by 429.85% YtD, starting at N0.61. The company reported a net income of N509.01 million for the first half of 2024, marking a significant recovery from a previous loss. However, concerns about negative valuation ratios and potential liquidity issues raise questions about the sustainability of this rally.
7. Oando Plc (+657.64% YtD):
Oando’s stock recorded an impressive 657.64% YTD gain, making it the second-highest performer on the NGX. The company’s turnaround in profitability, coupled with its recent acquisition of Nigerian Agip Oil Company, has significantly boosted investor confidence. Despite some concerns about valuation ratios, the stock’s strong financial performance and strategic moves support its price surge.
8. Juli Plc (+1,646% YTD):
Juli Plc leads the pack with an astonishing 1,646% YtD gain. The company’s remarkable turnaround, resulting in a profit of N3.42 million in the first half of 2024, has driven its stock price to new heights. However, its high P/E ratio of 120.79 and negative price-to-book ratio indicate potential risks, suggesting that investors should exercise caution.
The exceptional YtD gains of these eight Nigerian stocks underscore their strong performance in a challenging market environment. While their robust financial results and strategic developments have driven their rallies, investors should consider the broader market trends, valuation ratios, and potential risks when making investment decisions.
