Despite the generally bullish market in 2024, several stocks on the Nigerian Exchange (NGX) experienced sharp declines. While the NGX All-Share Index (NGXASI) delivered an impressive 37.65% year-to-date (YtD) return, gains were not evenly distributed.
The Oil and Gas Index emerged as the best-performing sector, surging by an outstanding 160%. In contrast, the Banking Sector Index lagged, recording a modest 20% YtD growth, underperforming the broader market.
At the individual stock level, notable winners included Juli Plc (+1,646%), Sunu Assurances (+877%), Oando (+529%), Eunisell (+502%), and Transcorp (+386%).
However, some stocks recorded steep losses: VFD Group (-78%), Multiverse (-60.42%), Dangote Sugar (-42.98%), NASCON (-41.62%), and C&I Leasing (-32.50%).
As we step into 2025, the big question on investors’ minds is whether these battered stocks could rebound.
Let’s examine their 2024 performance and evaluate their turnaround potential this year.
VFD Group: struggling for a comeback
2024 performance: VFD Group posted the sharpest decline on the NGX, falling 78% YtD. This followed a 25% decline in 2023, compounding investor pessimism.
Despite robust profit growth of 430% to N4.95 billion in the first nine months of 2024, operating cash flow plunged 81% to N2.92 billion, signalling liquidity challenges.
The stock’s P/E ratio of 91.3x, far above the industry average of 8.6x, highlights severe overvaluation concerns.
Outlook for 2025: The Company’s net operating cash flow per share of N15.36 provides some resilience, and its growth initiatives could spur a recovery.
However, VFD Group must execute its capital raise successfully and address liquidity constraints. Introducing dividend payments could further boost investor confidence.
For now, the recovery outlook remains cautious, with potential upside hinging on improved fundamentals.
Multiverse: Rebounding but overvalued
2024 performance: Multiverse suffered a dramatic reversal, losing 60.42% YtD after a stellar 367% gain in 2023.
However, the stock has rebounded strongly in 2025, gaining 51.7% YtD as of January 17, 2025.
Profit before tax surged 159% YoY to N223 million for the first nine months of 2024, while operating cash flow climbed to N464 million.
Despite these gains, its P/E ratio stands at a staggering 147.5x, raising significant overvaluation concerns.
Outlook for 2025: Multiverse’s recovery is supported by strong profit growth, but its extreme valuation and inconsistent trading volumes warrant caution.
Investors should wait for improved fundamentals and a more reasonable valuation before committing.
Dangote Sugar: Facing challenges amid recovery
2024 performance: Dangote Sugar saw a 42.98% decline in 2024 after a 255% rally in 2023. The stock has gained 18.46% YtD in 2025, with improving liquidity as total trading volume reached 117 million shares valued at N4.01 billion over the last three months; (October 18, 2024 – January 17, 2025)
However, rising debt levels and foreign exchange losses have strained profitability. The company’s Backward Integration Plan (BIP) to reduce reliance on imports remains critical but requires clear execution timelines.
Outlook for 2025: While the stock’s early gains in 2025 show promise, sustained recovery depends on addressing operational inefficiencies and executing its BIP.
Until these are resolved, the outlook remains mixed.
NASCON: Early signs of recovery
2024 performance: NASCON’s share price declined by 41.62% in 2024, reflecting weaker investor sentiment following a 355% gain in 2023.
However, the stock has shown resilience, gaining 22.8% YtD in 2025.
Profit before tax fell 16.33% during the first nine months of 2024, while earnings per share (EPS) dropped by 20% to N4.42. The stock’s P/E ratio has risen to 16.16x, suggesting optimism about recovery but also highlighting potential overvaluation.
Outlook for 2025: NASCON’s moderate volatility and steady trading activity make it relatively stable. However, its elevated valuation amidst declining profitability warrants cautious optimism.
C&I Leasing: Poised for growth
2024 performance: C&I Leasing declined 32.5% YtD in 2024 but has started 2025 with a 17.8% gain.
Trading volumes have been robust, with 305 million shares worth N1.17 billion exchanged over the past three months.
The company’s profit before tax grew by 197% in the first nine months of 2024, supported by gross earnings growth of 179%. Cost optimization efforts and asset efficiency are expected to drive further recovery.
Outlook for 2025: Strong earnings growth and improved liquidity make C&I Leasing an attractive recovery play. Continued focus on operational efficiency could propel further gains.
Closing thoughts: The path to potential recovery
As we assess the bottom five stocks of 2024, the relative distance from their 52-week highs offers a telling picture of their current performance and potential for a rebound.
While each stock has faced declines in 2024, their current trading positions in relation to their peak prices provide valuable insights into their potential for upside recovery.
Let’s look at how far each stock is from its highest price in the past year and what it means for 2025:
- VFD Group (N44.40) – 52-week high: N45
At just 1.33% below its peak, VFD Group is showing resilience. While it’s flat in early 2025, its relatively high valuation and solid cash flow suggest potential for a gradual recovery.
However, the company needs to execute its plans carefully to avoid concerns about overvaluation. If things go as planned, a rebound is certainly possible.
- Multiverse (N11.15) – 52-week high: N17
34.12% below its peak, but it has shown a 51.7% YtD gain in 2025, signaling that the stock could be on a recovery path, especially if its profit growth continues.
- Dangote Sugar (N38.50) – 52-week high: N82.65
53.4% lower than its high, but it’s already up 26.5% YtD in 2025, showing signs of a strong comeback if it tackles its challenges (debt, FX losses).
- Nascon (N37.65) – 52-week high: N75
49.87% below its peak, but with a 22.8% YtD gain in 2025, the stock is showing recovery potential. If it addresses its profitability issues, it could see more upside.
- C&I Leasing (N4.30) – 52-week high: N4.65
It is just 7.5% off its high, and it’s already up 14.06% YtD in 2025. Stable growth is possible if it maintains its momentum.
While all five stocks are off their highs, the YtD gains in 2025 for Multiverse, Dangote Sugar, Nascon, and C&I Leasing show they could be on the road to recovery. VFD Group, on the other hand, remains close to its high but needs to manage its valuation and liquidity better.
Overall, their turnaround potential in 2025 hinges on improving fundamentals, strategic execution, and favorable market conditions.
Investors should carefully evaluate each stock’s valuation, liquidity, and growth prospects before making decisions.
