These 10 Nigerian firms delivered over 200% stock return in 5yrs
Despite two economic recessions in five years, some companies on the Nigerian stock exchange (NSE) have seen their stocks rally significantly during the same period.
The All Share Index is up 74 percent in the last five years but 10 companies on the NSE have seen their stocks surge over 200 percent in that time.
These companies recorded strong growth in profitability over the period, an indication that the rally may be driven by the companies’ sound fundamentals.
The analysis was carried out using the share prices of each company as at January 2021 compared to January 2016.
NEM Insurance has seen its stock surge 537 percent to N2.24 as at January 29, 2021, from N0.38 in the same period of 2016.
During the period, its net profit grew 125 percent to N4.08 billion in the full year of 2020 compared to N1.81 billion in 2016.
May and Baker
Over the last five years, May and Baker’s share price grew 481 percent to N4.65 per share as at January 29th 2021 from N0.8 per share as at January 2016.
The pharmaceuticals, vaccines, medical diagnostics, foods and consumer healthcare manufacturer’s net profit jumped to N681.7 million in 2020 from N44.3 million as at 2016.
United Capital, a leading African financial and investment banking Group has seen its share go up by 331 percent to N5.9 per share as at January 2021 compared to N1.37 per share in January 2016.
However, the company’s net profit declined 26 percent to N3.46 billion in the first nine months of 2020 compared to N4.69 billion in the same period of 2016.
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B.O.C Gases Plc
BOC Gases Nigeria Plc’s shares are up 299 percent to N15.12 as at January 2021 from N3.75 per share in the same period of 2016. Its profit also jumped 757 percent to N194 million in the first nine months of 2020 compared to N29.5 million in the same period of 2016.
BOC Gases Nigeria Plc manufactures and distributes gases for the industrial and medical sectors in Nigeria including argon, nitrogen carbon dioxide and oxygen.
First City Monument Bank’s shares jumped 267 percent to N3.38 from N0.92 in the periods under review.
The bank recorded a 7 percent growth in profit to N13.9 billion in the first 9 months of 2020 compared to N12.9 billion in the same period of 2016.
Neimeth International Pharmaceuticals is another company that its shares have surged in the last five years. The company’s share price stood at N2.15 in January 2021, a 236 percent surge from N0.64 recorded in January 2016.
Neimeth’s profit after tax has risen 226 percent to N94.7 billion in 2020 from N28.5 billion in the full-year period of 2016.
On the list also is Stanbic IBTC Holdings with a 221 percent increase in its share price over the last five years.
Stanbic’s shares surged to N45 in January 2021 from N14 in January 2016.
The bank’s profit also jumped 232 percent to N94.7 billion in 2020 from N28.5 billion in 2016.
Okomu Oil Palm
Okomu Oil Palm, one of Nigeria’s largest agricultural firms has also seen its shares jump 221 percent to N93 per share in January 2021 compared to N29 per share in January 2016.
The palm oil maker’s profit also surged 50 percent to N7.38 billion in 2020 compared to N4.91 billion in 2016.
Cutix plc, one of Nigeria’s biggest manufacturer and supplier of cables has seen its shares grow 213 percent to N2.25 per share in January 2021 from N0.72 per share in January 2016.
The cable supplier’s profit also rose 54 percent to N473.2 million in 2020 from N307 million in 2016.
United Bank for Africa
United Bank for Africa’s shares is up 211 percent to N9.05 per share as at January 2021 from N2.91 per share in January 2016.
The Bank’s profit also surged 48 percent to N77.1 billion in the first nine months of 2020 compared to N52.2 billion in the same period of 2016.
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