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Most Impressive Nigerian Stocks For August

Most Impressive Nigerian Stocks For August

Amid a decline in foreign interest, the Nigerian stock market managed to end the month of August positive as the All-Share Index (ASI) gained 1.59% month-on-month.

The market capitalization also grew from N20.08 trillion at the beginning of the month to N20.4 trillion in the same period, thanks to stellar performances by the market's top gainers.

Here are the top three gainers for the month of August, and why they have been so impressive:

Pharma-Deko Plc (PHARMDEKO)

PHARMADEKO is the third-biggest gainer for the month of August, with a 48.62% growth from N1.09 at the beginning of the month to N1.62 as of report time.

Pharma-Deko Plc operates in the healthcare sector of Nigeria, specializing in the manufacturing and marketing of pharmaceutical & consumer products. The company is divided broadly into three (3) divisions; the pharmaceutical business group, consumer business group and contract manufacturing group.

A major reason for the recent rally in share price is the company's financial performance. Its Q2 2021 results revealed significant appreciation in top-line items on the income statement. The company generated a revenue of approximately N312 million in the first half of the year which represents a 125% appreciation compared to the first half of 2020. However, the company generated a loss of N8.3 million, which is significantly better than the loss generated in the first half of 2020, which stood at N177 million. The loss made is attributable to administrative expenses which took approximately N86 million.

Pharma-Deko is the 78th most traded stock on the Nigerian Stock Exchange over the past three months. PHARMDEKO has traded a total volume of 11.1 million shares in 217 deals valued at N17.1 million over the period, with an average of 176,819 traded shares per session.

The company has shares outstanding of 216,820,448 units and a total market capitalization of N351,249,125.76, using the current market price, as of Tuesday’s close of N1.62. According to Bloomberg, the company’s Earnings Per Share currently stands at -1.49. Its share price is up 8% Year-to-Date (YTD).

UPDC Plc (UPDC)

UPDC ended the month of August as the second-biggest gainer as its stock grew  57.63%, from N1.18 at the beginning of the month to N1.86 at the end of the month.

UPDC Plc operates in the real estate sector of the economy with construction and building development as its speciality. It is one of the leading real estate & facility management companies in Nigeria.

The company released its second-quarter 2021 financial highlights which revealed outstanding growth in top-line items on the income statement. It generated a revenue of approximately N244 million in the second quarter of the year which represents a 128.10% growth compared to the second quarter of 2020. The company posted a gain in operating profit of N124 million in the second quarter of the year, compared to the loss of N183 million made in the second quarter of 2020. However, the company made a loss of N204 million for the quarter majorly attributable to a finance cost of N242 million.

UPDC is the 21st most traded stock on the Nigerian Exchange over the past three months. It has traded a total volume of 246 million shares in 2,691 deals valued at N327 million over the period, with an average of 3.9 million traded shares per session. A volume high of 15.1 million was achieved yesterday.

The company has shares outstanding of 18,559,969,936 units and a total market capitalization of N34,521,544,080.96, using the current market price, as of Tuesday’s close of N1.86. Its share price is up by an impressive 135.44% YTD.

Honeywell Flour Mill Plc (HONYFLOUR)

For the month of August, Honeywell Flour's share price grew by an astonishing 156.29%, from N1.67 at the beginning of the month to N4.28, making it the top gainer for the month.

Honeywell operates in the consumer goods sector and deals in the manufacturing of wheat-based flour products such as flour, semolina, whole wheat meal, noodles and pasta. The company is part of the Honeywell Group, a foremost indigenous Nigerian conglomerate engaged in select businesses in key sectors of the Nigerian economy, namely Foods & Agro-Allied, Energy, Real Estate, Services, and Infrastructure.

A major reason for the recent appreciation in price is its financial performance. The company released its first-quarter 2021 financial highlights as the company’s end-of-year is on the 31st of March as opposed to the 31st of December. The results revealed outstanding growth in top-line items on the income statement. The company generated a revenue of approximately N33.05 billion which represents a 25.24% growth compared to the second quarter of 2020. Ultimately, the Profit After Tax (PAT), stood at N150 million, representing a 233% growth.

Honeywell Flour Mill has been the third most traded stock on the Nigerian Stock Exchange over the past three months. HONYFLOUR has traded a total volume of 768 million shares in 5,617 deals valued at N1.64 billion over the period, with an average of 12.2 million traded shares per session.

The company has shares outstanding of 7,930,197,658 units and a total market capitalization of N33,941,245,976.24, using the current market price, as of Tuesday’s close, of N4.28. According to Bloomberg, the company’s P/E ratio stands at 52.18, Earnings Per Share at 0.08 and dividend yield at 0.93%.

The company has proposed to make a dividend payment of N0.07 this year which represents a 75% growth from its 2020 dividend of N0.04. The company however has never paid an interim dividend.

Worthy Mentions

Morison Industries – +45.00%

Transcorp Hotels – +44.82%

Courteville Business Solutions – +29.17%

HONEYWELL FLOUR MILL PLC DAILY MARKET SUMMARYss

3.82 -0.08 (-2.05%)

Day high 3.91 Day low 3.82

HONEYWELL FLOUR MILL PLC

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TOP 5 MARKET GAINERS
Top Gainer
Index Opening Price Closing Price Change % Day’s High Day’s Low
NIGERIAN AVIATION HANDLING COMPANY PLC 3.20 3.52 10.00 3.52 3.20
PHARMA-DEKO PLC 1.78 1.95 9.55 1.95 1.95
VERITAS KAPITAL ASSURANCE PLC 0.21 0.23 9.52 0.23 0.23
CORNERSTONE INSURANCE PLC 0.53 0.58 9.43 0.58 0.57
SMART PRODUCTS NIGERIA PLC 0.24 0.26 8.33 0.26 0.26
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