If you invested N1 million in Morison Industries Plc on the 4th of January, 2021, you would have a portfolio worth N2.86 million at the end of June. This means that you would have made a profit of 185.71% on your investment, which is N1.86 million naira in six months.
Although Nigeria’s stock market has depreciated by -7.87% year to date, in comparison with the average inflation rate of 17.60% from year to date, if you invested in the 24 stocks listed below, the effect of the inflation rate would have been eroded.
Interestingly, the majority of these stocks have been pretty underrated by the larger investing public. Even more interesting is the fact that none of these 24 stocks is from the banking sector.
About 58% of these stocks are from the Consumer Goods and Insurance sectors which indicates that these sectors performed well during the period under review.
The top five (5) of the 24 stocks that attained this feat are listed below:
Morison Industries Plc
Morison Industries Plc is engaged in the production, manufacturing and marketing of pharmaceutical products, hygiene products and importation and distribution of medical, surgical and hospital consumables. The company’s share price gained a total of 185.71% year to date and outperformed the average inflation rate by 168.11%.
Surprisingly, its financial statement revealed an increase in loss after tax of 34.17% from N13.16 million to N19.99 million and a 25% reduction in revenue although this does not appear to have affected the company’s share price.
Morison Industries Plc was trading at N1.40 at the time of writing this report.
Champion Breweries Plc
Champion Breweries is the 4th largest brewery on the Exchange by market capitalization.
Champion Breweries Plc is an established brewery in Nigeria manufacturing Champion Lager Beer and Champ Malta as well as a selection of non-alcoholic beverages. The company also brews and packages products under contract for Nigerian Breweries Plc.
The company’s share price gained a total of 144.19% at the end of half-year 2021, outperforming the average inflation rate by 126.59%.
The brewery recorded revenue growth of 22.05% in the first quarter of the year, from N1.95 billion in the corresponding period of 2020 to N2.38 billion. Net profit for the quarter grew by 53.14%, the highest amongst all four breweries in the same period which could be a motivating factor for the increase in its share price.
Champion Breweries was trading at N2.10 at the time of writing this report.
Royal Exchange Plc
The primary business of the Group, Royal Exchange Plc, is risk management, which includes life assurance, general insurance, indemnity and guarantees, healthcare, and other financial services (banking and financial services, trusteeship and asset management).
Royal Exchange Plc’s share price gained a total of 134.62% at the end of half-year 2021, outperforming the average inflation rate by 117.02%.
The company recorded an impressive growth of 112% in profit after tax and revenue growth of 7% which resulted in the increase in share price. Royal Exchange Plc is currently suspended from trading on the NGX as a result of defaulting in the filing of its financial statements.
However, the company shares last closed at N0.55.
Regency Alliance Insurance Plc
Regency Alliance Insurance Plc is an insurance company in Nigeria licensed to cover all classes of non-life insurance. The company also has business interests in property investments in the form of real estate development and leasing, finance leasing, retail and microfinance banking, vehicle tracking and fleet management services.
As earlier mentioned, no banks outperformed the average inflation rate. However, some Insurance companies did and Regency Assurance tops such companies to rank amongst the highest 5 stocks.
The company’s share price gained a total of 109.09% from year to date, outperforming the average inflation rate by 91.49%.
The company grew its net profit by 95.79% in the first quarter of the year from N218.54 million to N427.88 million while revenue appreciated by 9.67% in the same period which explains the reason for the share price appreciation.
The company’s shares were trading at N0.46 at the time of writing this report.
Vitafoam Nigeria Plc
Vitafoam Nigeria Plc is Nigeria’s leading manufacturer of flexible, reconstituted and rigid foam products. It has the largest foam manufacturing and distribution network which facilitates just in time delivery of finished products throughout the West African sub-region.
The company’s share price gained a total of 97.44% at the end of half-year 2021, outperforming the average inflation rate by 79.84%.
In their second-quarter ending March 30, 2021, Vitafoam Nigeria Plc reported a growth of 45.61% in profit after tax.
The company’s shares were trading at N16.20 at the time of writing this report.
Other Stocks that outperformed the average inflation rate are:
- Consolidated Hallmark Insurance Plc – 87.50%
- Seplat Energy Plc – 71.51%
- Linkage Assurance Plc – 61.54%
- Mutual Benefits Assurance Plc – 59.26%
- Guinness Nigeria Plc – 52.63%
- Eterna plc – 47.06%
- Coronation Insurance Plc – 42.50%
- Honeywell Plc – 39.17%
- Livestock Feeds Plc – 35.97%
- UAC Nigeria Plc – 34.485%
- Fidson Healthcare Plc – 33.33%
- United Capital Plc – 31.63%
- University Press Plc – 30.47%
- Sovereign Trust Insurance Plc – 30.00%
- Trans-nationwide Express Plc – 23.61%
- Cutix plc – 21.74%
- Okomu Oil Palm Plc – 20.88%
- Veritas Kapital Assurance Plc – 20.00%
- Meyer Plc – 18.00%