The Nigerian equity market has continued its bullish start in the year as it posted gains in February, despite global macro-economic worries.
The All-Share Index (ASI) in the month of February has gained 1.65% for the month starting at 46,624.67 basis points to ending at 47,394.53 basis points. The market capitalization also grew in similar fashion from N25.1 trillion at the beginning of the month only to end the month trading N25.5 trillion, representing a 1.67% gain.
These gains would not have been possible without stellar stock price performances from these top gainers, which gave the market an edge. These stocks are:
R. T. BRISCOE PLC (RTBRISCOE) 286.36%
R.T. Briscoe Nigeria PLC is a holding company that touts to have over sixty years of experience in automobile, industrial compressor, material handling, industrial equipment, power and real estate sectors. The company is known to be the authorized distributor for leading global brands such as Toyota Motors, Toyota Forklifts, BT Material Handling, Raymond Warehouse Equipment, Elgi Compressors, JCB Generators and so on.
The increase in its share price began on the 28th of January when the company released its unaudited fourth quarter financial statement, which revealed improved performances in top line items as against 2020. Its revenue grew by 85.68% from approximately N6.5 billion in full year of 2020, to N12.03 billion in 2021.
Diving deeper into its revenue lines, although all revenue lines recorded a 30% and above increase, a significant uptick in its industrial equipment revenue line was key in delivering its improved performance as the income line grew by approximately 295% from 670 million to 2.65 billion. Ultimately, the company was able to overturn a negative return in 2020 to a positive Profit After Tax (PAT), as the firm recorded a PAT of 96.6 million in 2021.
For the month of February, the company’s share price grew by 286.36%, from N0.22 at the beginning of the month to N0.85 at the end of the month. In fact, the stock price hit a new 52 week high in February but quickly retraced on the last trading day of the month, as it was one of the top five losers. Its 52-week high of 1.03 means that the firms market capitalization hit over a billion naira to 1,211,647,586.40, for the first time since 2015.
The company has shares outstanding of 1,176,356,880 units and a total market capitalization of N999,903,348.00, using its current market price as of yesterday’s close.
SCOA NIGERIA PLC (SCOA) 172.12%
SCOA is in the business of automobile sales, maintenance, distribution and leasing, manufacturing, technical sales and services, general merchandising, power generation, furniture and agriculture, production of foods and fruit juices.
The uptick in its share price began on the 2nd day of February 2022, two days after the company released its unaudited fourth quarter statement, which also revealed improved performances in top line items as against 2020, similar to what we saw in R.T. Briscoe. Its revenue grew by 132.78% from approximately 6.5 billion in full year of 2020, to 15.2 billion in 2021. Diving deeper into its revenue lines, although all revenue lines recorded a 30% and above increase, a significant uptick in its equipment revenue line was key in delivering its improved performance as the income line grew by approximately 680% from 989 million to 7.7 billion. Ultimately, the company was able to overturn a negative return in 2020 to a positive Profit Before Tax (PBT), as the firm recorded a PBT of 562.5 million in 2021. Its PAT stood at 180.8 million.
For the month of February, the company’s share price grew by 172.12%, from N1.04 at the beginning of the month to N2.83 at the end of the month. In fact, the stock price is currently trading at its 52-week high.
The company has shares outstanding of 649,825,665 units and a total market capitalization of N1,839,006,631.95, using its current market price as of yesterday’s close. The stock is currently trading at levels seen in early January 2022, before it sold off in. The rally seen represents a recovery from the sell-off seen in January.
Academy Press PLC (ACADEMY) 88.30%
Academy Press operates in the service sector. The firm is into the business of printing and publishing and it stands as one of the oldest publishers with over 50 years of experience, offering a wide range of product list which includes Educational, Scriptural Books, Autobiographies, Brochures, Annual Reports & Accounts, Journals and Security prints.
The company touts to have different categories of “State-of-the-Art equipment as well as skilled personnel to handle low, medium and high-volume prints with prompt delivery to our customers’ fulfillment.”
The company was one of the top three gainers in January 2022 and it is making the list again, due to investors still reacting to the stellar performance of its third quarter report. Recall that its third quarter report recorded an increase in revenue by approximately 118% to N2.8 billion from 1.3 billion recorded in the previous year (YoY). After the deduction of cost of sales, which stood at N2.0 billion, the gross profit of the firm stood at N717 million, a 100.78% gain YoY. Ultimately, its PAT stood at N139 million, a 117% increase YoY.
For the month of February, the company’s share price grew by 88.30%, from N0.94 at the beginning of the month to N1.77 at the end of the month. The firm traded a high of 2 towards the end of the month but it retraced towards the end of the month. The firm is trading at a price point not seen since 2014.
The company has shares outstanding of 604,800,000 units and a total market capitalization of N1,070,496,000.00, using its current market price as of yesterday’s close. According to Bloomberg, the company’s P/E ratio currently stands at 8.90, its EPS is 20 kobo and ACADEMY’s share price has grown over 331% YoY.
Other stocks with significant appreciation include;
- LEARNAFRCA 86.43%
- ROYALEX 71.25%
- NIGERINS 50%
On the decliners side, we have CAVERTON losing 13.41% leading the charge. This is followed by JULI and ABCTRANS losing 13.19% and 11.11% respectively.
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