The shares of BUA Cement Plc have gained N618 billion since the opening of trade on the Nigerian Stock Exchange for Q4 2020, as investors position for the shares owing to its relative valuation and impressive growth prospects.
This was uncovered by Nairametrics after tracking the performance of the shares of BUA Cement Plc on the floor of the Nigerian Stock Exchange, since October 2nd, 2020 when the market opened for trade for Q4 2020.
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The checks revealed that the company has gained N618,024,461,595.00 largely on the back of the increased liquidity from local investors, who found the shares of BUA Cement impressive and chose to invest in the market amidst depressed yields in the fixed income space.
It is important to note that the change in investors’ sentiment driven by the depressed yields in the fixed income space which led to the massive buy pressures on the local bourse, has seen the market capitalization increase from N1.41 trillion to N2.03 trillion.
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This means that the market value of the 33,864,354,060 issued ordinary shares of BUA Cement has increased by 43.83% between October 2, 2020 and December 24, 2020.
However, in monetary terms, the shares have increased from N41.75 to N60.00 during the period under review. This translates to a gain of N18.25 per share.
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What you should know
- According to data tracked and analysed by Nairalytics, the research arm of Nairametrics, BUA Cement remains the fourth most capitalized company on the Nigerian Stock Exchange, with a market capitalization of N2.03 trillion.
- The Cement manufacturer stands ahead of Nestle with a market capitalization of N1.2 trillion, and behind Airtel, a telecommunication behemoth that maintains a market capitalization of N3.2 trillion.
- For valuation and profitability, the company stays ahead of Lafarge Africa Plc, another important player in the cement sector, and behind Dangote Cement Plc, the industry leader.
- In terms of operational rigour and built-up production infrastructure, Lafarge Africa Plc is the second-largest cement manufacturer in Nigeria, with a total installed capacity of 10.5 million mtpa, while Dangote Cement leads the park with the total national installed capacity of 29.25 million mtpa.
- Nairametrics reported last week that the Management of BUA Cement Plc had signed a contract for the construction of additional three production plants, with an installed capacity of 3 million metric tonnes per annum each.
- These additional production plants are expected to add to the robust infrastructure of the cement manufacturer. Nairametrics noted that when completed in 2022, in addition with its 3rd cement line of 3millon mtpa in Sokoto, booked for commissioning in mid-2021, the total installed cement production capacity of the company will increase from 8 million mtpa to 20 million mtpa.
- Thus, putting the company ahead of Lafarge as the second-largest cement manufacturer in Nigeria.