Stockbrokers laud Ellah Lakes’ strategic investment in palm plantation, livestock

Stockbrokers have commended the management of Ellah Lakes Plc for its strategic investment in palm plantation and livestock, following a recent visit to the company’s facilities in Iguelaba Community, Edo State.

A delegation of stockbrokers, led Muyiwa Adeyemi, Managing Director, Atlas Portfolio visited Ellah Lakes Plc plantation in Edo State last week and were impressed by the company’s commitment to diversification and sustainable growth.

The securities dealers, observed significant investments in palm plantation and piggery facility, which are expected to contribute substantially to the company’s revenue streams.

According to him. the visit has reinforced stockbrokers’ confidence in Ellah Lakes Plc management and its ability to deliver value to shareholders.

With a transaction of 572 million Ordinary Shares in 3,097 deals, valued at N1.72 billion from June 24 – September 19, 2024, Ellah Lakes is the 17th most traded stock on NGX.

“We are pleased to see Ellah Lakes Plc proactive approach to diversifying its operations and positioning itself for long-term success. The investments in the palm plantation and livestock demonstrate the company’s focus on sustainable growth and its potential to enhance shareholder value”, says Adeyemi.

Ellah Lakes’ Managing Director and Chief Executive Officer, Chuka Mordi, explained that the Company placed a premium on becoming a diversified Agribusiness over the next five years.

According to him, the initial palm trees planted on 200 hectares of land three years ago are at the fruiting stage while additional ones are being planted on another 200 hectares.

Mordi noted that upon completion of its piggery’s phase one project, the Company shall produce 5000 tones of meat, every year, and thus become a strong primary source of Pork products for Edo, Sapele and Warri axis.

“Ellah Lakes Plc’s strategy is to be a successful diversified Agribusiness over the next 5 years, eventually going all the way along the value chain, to consumer goods. Liquidity has increased greatly throughout the year, and we are very happy with this. We are trading at a huge discount to Net Asset Value (NAV), but we are comfortable that our shareholders will see significant upside, going forward. As a defensive sector, our sector is probably the most resilient on the market, and we expect this to be demonstrated to the market, as we continue on our growth trajectory.”, says Mordi.

The Stockbrokers also expressed optimism that Ellah Lakes’ investments would soon begin to reflect positively on its bottom line, driven by increasing demand for palm oil and livestock products. They commended the management staff for their foresight, innovation and strategic planning.

Ellah Lakes Plc is reputed as the first Agribusiness Company to be listed on the NGX. The Company’s target is to build ” an agro-industrial park over the next 5 years to consolidate the Company’s primary production base whilst enhancing investment attraction as a multi-asset player”.