As of August 2024, eight Nigerian stocks have experienced remarkable triple-digit year-to-date gains.


As of August 2024, eight stocks listed on the Nigerian exchange have recorded impressive triple-digit Year-to-Date (YtD) gains, showcasing their remarkable performance despite the prevailing market volatility.

The leading stocks include Juli Plc, Oando Plc, RT Briscoe, Julius Berger (JBERGER), Veritas Kapital (VERITASKAP), Presco Plc, Geregu Power (GEREGU), and BUA Foods (BUAFOODS).

In spite of the overall market fluctuations and a decline from previous peaks, these stocks have attracted considerable interest from investors.

On August 30, 2024, the NGX All-Share Index (NGXASI) closed at 96,579.54 points, indicating a YtD gain of 29.16% and a total market capitalization of N55.49 trillion.

While the index's growth has decreased from 39.84% at the end of Q1 2024 to 29.16% by August, it continues to show positive momentum.

In a historical context, the NGXASI recorded a return of 45.90% in 2023, indicating that although 2024 has experienced a deceleration, the market remains in a favorable position.

This situation underscores the importance of conducting sector-specific analyses, as there are still opportunities for gains in particular stocks and sectors.

BUA Foods (+104.19% YtD): BUA Foods has emerged as a leading entity in the Consumer Goods sector, achieving a year-to-date increase of 104.19%. This impressive performance positions it eighth on the Nigerian Exchange (NGX), with the stock reaching a 52-week peak of N394.90, a significant rise from N193.40 at the start of the year.

In the first half of 2024, BUA Foods reported a pre-tax profit increase of 25.41%, totaling N137.189 billion. Additionally, earnings per share (EPS) rose by 37.43% to N7.27.

Although the company has a high price-to-earnings (P/E) ratio of 48x, indicating a premium valuation, the strong growth in earnings seems to validate its upward trend. The stock's low beta of -0.065 suggests a level of stability that may attract conservative investors.

Geregu Power (+150.63% YtD): Geregu Power's stock has experienced a remarkable 150.63% increase year-to-date, following a substantial 168% rise last year.

For the first half of 2024, the company reported a 24% increase in pre-tax profit, amounting to N30.2 billion, with EPS recorded at N8.01.

Despite a high P/E ratio of 87x, the stock's solid financial results and a lower beta of 0.399 indicate a combination of growth potential and stability. The elevated valuation appears to be justified by anticipated growth, although it warrants careful observation.

Presco Plc (+151.50% YtD): Presco has achieved a remarkable year-to-date gain of 151.50%, making it the leading performer in the Agricultural sector.

The company's net income increased by 18% to N38.877 billion in the first half of 2024, exceeding the total for the entire year of 2023.

With a P/E ratio of 8.57x and a dividend yield of 5.42%, Presco's strong profitability and appealing valuation contribute to the momentum of its share price.

Veritas Kapital (+272.97% YtD): Veritas Kapital's share price has risen by 272.97% year-to-date, beginning at N0.37.

For the first half of 2024, the company reported a remarkable 414% year-over-year increase in pre-tax profit, reaching N5.8 billion, with a return on equity of 40%.

Although the stock exhibits a high price-to-sales ratio, its low beta of 0.344 and robust financial performance justify the price appreciation. Nonetheless, there are concerns about potential overvaluation in the near term, which may restrict further growth.

Julius Berger Plc (+319.77% YtD): Julius Berger's stock has experienced a substantial increase of 319.77% year-to-date, starting from N43.00.

The company announced a pre-tax profit of N25.2 billion for the first half of 2024, reflecting a 123.2% rise compared to the previous year.

With a price-to-earnings ratio of 15.77 and strong earnings growth, the stock's upward trend is underpinned by solid financial fundamentals. However, the elevated valuations necessitate vigilant observation.

RT Briscoe (+429.85% YtD): RT Briscoe's share price has surged by 429.85% year-to-date, beginning at N0.61.

The company reported a net income of N509.01 million for the first half of 2024, marking a significant recovery from the loss incurred the previous year. Despite this impressive growth, concerns regarding negative valuation ratios and potential liquidity challenges may affect the sustainability of these gains.

Oando (+657.64% YtD): By the end of August 2024, Oando achieved a year-to-date increase of 657.54%, ranking it second on the Nigerian Exchange.

The stock has also experienced a remarkable 204% rise over the past four weeks, making it the second-best performer on the exchange during this timeframe. Last year, Oando recorded a year-to-date gain of 153.93%.

In 2023, Oando's pre-tax profit soared to N104.1 billion, a significant turnaround from a pre-tax loss of N61.8 billion in 2022. The recent announcement of the acquisition of Nigerian Agip Oil Company is anticipated to greatly enhance production capacity and shift revenue towards more stable and profitable avenues.

The company's price-to-earnings ratio is currently at 13.55, which is significantly lower than the industry average of 46. It also boasts a remarkably low stock beta of 0.005, reflecting minimal volatility in comparison to the market. Conversely, its price-to-book ratio is -0.48, contrasting with the industry average of 0.47, while its price-to-free cash flow ratio stands at 9.08, slightly above the industry average of 8.27.

In summary, the notable improvement in profitability and the strategic acquisition are likely enhancing investor confidence, despite some ratios indicating potential issues or areas for improvement.

Juli Plc (+1,646% YtD): Juli Plc has achieved an extraordinary year-to-date gain of 1,646%, positioning it as the leading performer on the NGX.

The company has made a remarkable recovery, reporting a profit of N3.42 million in the first half of 2024, bouncing back from a prior loss.

The elevated P/E ratio of 120.79 suggests robust expectations for future growth, which has contributed to the surge in share price. However, this also raises concerns about potential overvaluation if earnings do not meet expectations.

The negative price-to-book ratio of -3.37 presents worries regarding financial stability, which could affect investor confidence.

While the high price-to-sales ratio of 5.63 and a solid pre-tax margin of 4.66% bolster the rally by indicating strong operational performance, the overall elevated valuation and negative book ratio warrant caution.

In conclusion, the remarkable year-to-date performance of these eight Nigerian stocks highlights significant achievements in a challenging market environment.

Although their strong financial outcomes and strategic initiatives have fueled their growth, investors should remain mindful of broader market trends, valuation metrics, and potential risks when considering investments in these stocks.