The improved macro economic fundamentals and decent half year results are an indication that Chemical and Allied Products (CAP) Plc may exceed its performance in 2017.

About the company

Chemical and Allied Products (CAP) Plc, a subsidiary of UAC of Nigeria (UACN) Plc, is in the paint and coat production business. The company was established originally as ICI investments limited in 1957, but later became ICI Nigeria Limited in 1965.

Following the promulgation of the Indigenisation Decree in 1972 and 1977, ICI Nigeria Limited sold 40%, and then 60% of the company to the Nigerian public and changed its name to Chemical and Allied Products Limited.

In 1992, ICI Nigeria Limited finally disposed off its minority 40% shareholding in CAP Plc, when it sold 35.7% of its equity to UAC of Nigeria Plc and the rest to the Nigerian public on the floor of the Nigeria Stock Exchange (NSE). Currently, UAC of Nigeria Plc holds about 50.09% of the company’s issued share capital.

Recent Results

Yesterday, CAP Plc released its results for the period ended June 2018. Revenue increased from N3.4 billion in 2017 to N3.8 billion in 2018. Profit before tax also grew from N1 billion in 2017 to N1.3 billion in 2018. Profit after tax rose from N696 million in 2017 to N917 million in 2018.

Current Share Price: N35

Year High: N40

Year Low: N34.5 

FCMB ads 300 x 250

Year to date: 2.94%

One Year Return: 2.55%

Standard chartered

Chances of the stock going up or down

The stock is currently trading close to its year low, and may dip further due to current negative sentiments in the market as a whole. The All share index which started the year on a positive note is currently down 4.68%.

Further declines will not be sharp as the stock is thinly traded, and largely held by institutional investors.

Price Earnings valuation: CAP is currently trading at a Price to Earnings ratio of 15.79 times earnings, much higher than the average PE ratio on the NSE of 10.7 times earnings. It also trades higher than its peers. Berger Paints is trading at a PE ratio of 11.1 times earnings. CAP is one of the blue chip stocks on the exchange, however, and as such, trades at a slight premium.


Half year results released by the company show a marked improvement from the comparative period of the prior year. Earnings per share up 31%. If the current level of growth is maintained, the company could exceed last year’s full year earnings per share of N2.14 and pay a higher dividend. Last year’s dividend payment of N2.03 was the company’s lowest in half a decade.

Recent fund raise by sister companies and the parent company, UAC of Nigeria Plc, mean they may not seek inter company loans as had been done in the past. 

The paints sector is filled with several mushroom players. Companies like CAP are thus, reliant on big ticket projects, due to their pricing. Economic recovery, and the passage of the 2018 budget should have positive effects on the paints sector.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via


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