₦airaland Forum

The truth is during the main BULL. FUNDAMENTAL STOCKS will be repriced especially those that are really undervalued in valuations

Please who was that oga that prophesied banking stocks ...FBNH #50, GTCO #100,ZENITHBANK #80,UBA #60 some time ago..

Princkez:
Please who was that oga that prophesied banking stocks ...FBNH #50, GTCO #100,ZENITHBANK #80,UBA #60 some time ago..

Oga Oracle

Princkez:
Please who was that oga that prophesied banking stocks ...FBNH #50, GTCO #100,ZENITHBANK #80,UBA #60 some time ago..

People didn't see this coming at the time

megawealth01:
Oando

It's expected to correct after the JUNE 30 qualification... NGX is a game

Oando beats every sense of rational reasoning and predictions Oo. If you remember, the price started falling even before June 30.
I just pray they follow through with the share redistribution before another drama.

Sunrisepebble:
I loaded at 100 today.

Why? What's your target exit price if you're buying this high?
The majority sale price is ~$0.06.
At $0.06 (+ 20% premium for minority holders) = $0.072 price per share.
At current USD rates, price in naira = 1550 * 0.072 = 111.6 naira.

Why are you buying when the maximum you can get is a 10-12% upside? (If the above is correct)

The way I see it is, since I can’t capture all gains and time the market perfectly. Once the stock has reached my desired percentage % return I just take profit and look for something else that has sizable return to channel the funds too.
If a stock has run more than my desired percentage return and its still undervalued then I don’t sell (e.g Wapco) but if I feel the valuation is not backed by the results then I’m out. It’s the case for MTN at the moment for me but let’s see H1, I think it’s fairly priced here based on what my estimate was

SonofElElyonRet:
I envy your discipline

I think people won’t sell to them when they do the MTO so the company will remain listed on the NGX. I’m not buying with MTO in mind, I’m buying for dividend and capital appreciation. If truly they made N200bn PBT in H1 and N7+ EPS and are paying another interim div of N4 for Q2 then why should I sell such a great business. The annualized result gives N14 EPS and with PE of 9-10x, that’s a N130 valuation. Imagine another N4 dividend for final. That’s 10% dividend yield for the FY.
When the Chinese come to run the company fully imagine the effect on the results. Seems a buy to me here even at current price

Olaide1295:
Why? What's your target exit price if you're buying this high?
The majority sale price is ~$0.06.
At $0.06 (+ 20% premium for minority holders) = $0.072 price per share.
At current USD rates, price in naira = 1550 * 0.072 = 111.6 naira.

Why are you buying when the maximum you can get is a 10-12% upside? (If the above is correct)

Sunrisepebble:
I think people won’t sell to them when they do the MTO so the company will remain listed on the NGX. I’m not buying with MTO in mind, I’m buying for dividend and capital appreciation. If truly they made N200bn PBT in H1 and N7+ EPS and are paying another interim div of N4 for Q2 then why should I sell such a great business. The annualized result gives N14 EPS and with PE of 9-10x, that’s a N130 valuation. Imagine another N4 dividend for final. That’s 10% dividend yield for the FY.
When the Chinese come to run the company fully imagine the effect on the results. Seems a buy to me here even at current price

Interesting view. Thanks.
I had assumed an MTO was mandatory and minority holders won't have an option but to accept it.

megawealth01:
NOTE

BONUS SELLERS are still offloading VFD... How far they go in this offloading? Only Mr TIME will answer that

It went up by over 7% .. hope it'll still come down for me.. I never ready

crownprince2017:
You they read things upside down?

You are emotional to the extent that you can't comprehend clearly.

You're probably right one of the promoters or marketers of low quality (aka junk stocks)stocks.

I thank you for the vituperations.

Olaide1295:
Interesting view. Thanks.
I had assumed an MTO was mandatory and minority holders won't have an option but to accept it.

The huge margins Cement bussinesses in Nigeria are running on will reduce when Chinese starts running it. they will first debottleneck the plants to run at full capacity, look for capacity expansion and hence more market share to sell these added capacity. These guys are very competitive.
Their coming is one of Alhaji's big worries.

First 3 years under the Chinese may not be very profitable for WAPCO. Huge upfront Capex will reduce Cashflow

- NNPCL to list on stock exchange by 2028
- NNPC may sell refineries.

Mr Bashir Bayo Ojulari, GCEO NNPC Ltd @ 9th OPEC International Seminar Vienna, July 2025

Olaide1295:
Why? What's your target exit price if you're buying this high?
The majority sale price is ~$0.06.
At $0.06 (+ 20% premium for minority holders) = $0.072 price per share.
At current USD rates, price in naira = 1550 * 0.072 = 111.6 naira.

Why are you buying when the maximum you can get is a 10-12% upside? (If the above is correct)

Which Nigerian investor would sell WAPCO for N111.6? When the Chinese are ready, they would come to table for discussion.

Go and ask what happened to Oando delisting. For Naija, we know how to play this game. Last last we go use court adjournment frustrate their life if they no wan pay better money.

brodalikeme:
Oando beats every sense of rational reasoning and predictions Oo. If you remember, the price started falling even before June 30.
I just pray they follow through with the share redistribution before another drama.

I'm expecting it to go low than 40 sha. I topped up small today anyways... I'm building back what I sold off small

chinonsobest:
Which Nigeria investor would sell WAPCO for 116? When the Chinese are ready, they would come to table for discussion.

Go and ask what happened to Oando delisting. For Naija, we know how to play this game. Last last we go use court adjournment frustrate their life if they no wan pay better money.

This is same for PZ. If they want to delist PZ it won't be less than #150

SonofElElyonRet:
It went up by over 7% .. hope it'll still come down for me.. I never ready

Really. I'm not monitoring it. I kept both my bonus and initials. I might top up if it ever goes below 10

PASTOR CHRIS REVIVES PRIME FEEDS AND FLOUR MILLS NIGERIA LIMITED

Pastor Chris Oyakhilome has made a significant impact on the Nigerian economy by acquiring and reviving Prime Feeds and Flour Mills Nigeria Limited. The company, which produces a wide range of animal feeds, has been revitalized under Pastor Chris's leadership, providing employment opportunities for thousands of youths in Edo State, Nigeria.

NettyNelly:
The huge margins Cement bussinesses in Nigeria are running on will reduce when Chinese starts running it. they will first debottleneck the plants to run at full capacity, look for capacity expansion and hence more market share to sell these added capacity. These guys are very competitive.
Their coming is one of Alhaji's big worries.

First 3 years under the Chinese may not be very profitable for WAPCO. Huge upfront Capex will reduce Cashflow

No, cement doesn't travel fast as transport cost is major weakness in exhibiting pricing power, Dangote has a geographical advantage and cost benefit, wapco needs quite some capex and depleting limestone reserves, doesn't know the intention of the Chinese, Dangote done alot of capex it time to milk it soon. And it energy cost advantage is a moat to stand. Less energy cost a blessing for the entire industry.

Here’s a side-by-side comparison of key financial ratios for Dangote Cement and Lafarge Africa (WAPCO) as of Q1 2025 and FY 2024:

📌 Dangote Cement – Q1 2025 (ended Mar 31)

Gross margin: ~59.0% (₦587 b/₦994.7 b)

Operating margin: ~40.0% (₦397 b/₦994.7 b)

EBITDA margin: 46.4% (₦461.6 b/₦994.7 b)

Debt-to-equity: ~100.6% (₦2.39 t debt / ₦2.38 t equity)

Interest coverage ratio (ICR): ~4.1× (EBIT ~₦1.27 t TTM / interest cost ~₦311 b)

Return on Equity (ROE): ~25.8% (FY 2024 baseline)

Return on Capital Employed (ROCE): ~30.4%



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📌 Lafarge Africa (WAPCO) – FY 2024

Gross margin: ~47.5% (based on Q1 comparison note)

Debt-to-equity: Very low ~0.06 (₦312.6 m debt vs ₦553.3 b equity)

Interest coverage: ~878× (EBIT ₦228.8 b / interest ≈ ₦0.26 b)

ROE: ~21.3% (Dec 2024)

ROA: ~14.0%

ROCE: ~32.2%



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📊 Ratio Comparison

Ratio Dangote Cement Lafarge Africa (WAPCO)

Gross Margin ~59% (Q1 2025) ~47.5% (Q1 comparable)
Operating/EBITDA Margin ~40% / 46% ~not available, but implied lower
Debt-to-Equity ~1.01× (100.6%) ~0.06× (very low leverage)
Interest Coverage ~4.1× ~878× (very comfortable)
ROE ~25.8% ~21.3%
ROCE ~30.4% ~32.2%



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🔍 Key Insights

Profitability & efficiency: Dangote leads on profitability with higher margins across the board—gross (59% vs 47.5%), operating (~40%), and EBITDA (~46%).

Leverage: Dangote is far more leveraged (D/E ≈1.0) compared to Lafarge, which is essentially unleveraged (D/E ≈0.06). This gives Lafarge greater financial flexibility and lower risk.

Interest burden: Dangote’s interest coverage (~4×) is solid but modest versus Lafarge’s extremely low interest exposure.

Returns: Both generate strong returns on equity/capital (~20–30%), with Lafarge slightly ahead on ROCE thanks to light leverage.

Strategic tilt: Dangote’s aggressive expansion and debt-fueled investments drive scale and margins, while Lafarge’s conservative balance sheet yields stability and resilience.



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✅

Dangote Cement delivers superior margin performance and greater market leverage—but carries leverage risk.

Lafarge Africa offers lower risk, excellent returns, and a rock-solid balance sheet, though with more modest profitability.

EDUECO:
This is how to become an intelligent investor.

Or intelligent investigator you meant.

Today's Top Volume Trades

jonnysessy:
Or intelligent investigator you meant.

Oga 'Guguru' I salute you!

Many investors underate the power of shareholder's funds(aka equity).

Shareholder's funds is how I know the real worth(intrinsic value) of a company.

PZ Cussons Nigeria Plc has marked a strong turnaround, posting a net profit of ₦5.5 billion for the financial year ending May 31, 2025—its first profit after a ₦76 billion loss in FY 2024 .


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📈 FY 2025 Financial Highlights

Revenue surged to ₦212.6 billion (up ~40% from ₦152.2 billion) .

Operating profit rebounded to ₦17.3 billion versus an operating loss of ₦127.4 billion in FY 2024 .

Forex losses dropped significantly to ₦7.8 billion from ₦157.9 billion, aided by relative naira stability .

Gross margin compressed to 37.2% from 55.2%, due to raw material costs jumping 58% to ₦154.9 billion .

Earnings per share improved to ₦1.00, reversing a previous loss of ₦19.00 per share .



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💼 Balance Sheet & Cash Flow

Item FY 2025 FY 2024

Total assets ₦163.9 billion (+4.4%) —
Cash ₦40.7 billion —
Non-current borrowings ₦63.9 billion ₦59.8 billion
Current borrowings ₦7.6 billion ₦29.2 billion (repaid ₦27.8bn)
Net operating cash flow ₦51.5 billion ₦63.2 billion
Trade payables ₦104 billion ₦90.6 billion


The company strengthened its solvency by repaying substantial short-term debt .


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🔍 What Drove the Turnaround?

1. Revenue growth outpaced prior year by ~40%.


2. Sharp reduction in forex losses, thanks to naira stabilization.


3. Cost control actions, though raw material inflation pressured margins.


4. Debt structuring, likely to support financial resilience.




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📊 Stock & Market Outlook

Share price trades around ₦38.00 with a P/E of ~19× .

In FY 2025 alone, the stock appreciated ~56.4% on the Nigerian Exchange .



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✅ Bottom Line

PZ Cussons Nigeria’s recovery is impressive, reversing a ₦76 billion loss to a ₦5.5 billion profit primarily through a mix of stronger sales and reduced currency losses. While higher material costs and lower operating cash flow remain challenges, the company appears positioned for sustainable recovery—with stronger margins and consolidated balance sheet strength.

chinonsobest:
Which Nigerian investor would sell WAPCO for N111.6? When the Chinese are ready, they would come to table for discussion.

Go and ask what happened to Oando delisting. For Naija, we know how to play this game. Last last we go use court adjournment frustrate their life if they no wan pay better money.

Protracted court adjournments may discourage investors also affect the price negatively as it happened to Oando too.

KarlTom:
- NNPCL to list on stock exchange by 2028
- NNPC may sell refineries.

Mr Bashir Bayo Ojulari, GCEO NNPC Ltd @ 9th OPEC International Seminar Vienna, July 2025

Must it take so long

SonofElElyonRet:
Must it take so long

Would you invest in an NNPC refinery the way they run right now?
Let them sell if they want to sell and the new owners decide what to do with the refineries.

SonofElElyonRet:
Must it take so long

Its a cash cow so they need to milk it dry and sell carcass to the public by 2028

Zagee:
MTN and Transcorp vision 2030.
Award of Violence Extraordinaire for friday goes to 🥁🥁
.... Ymcy56
🤣🤣

Just been laughing really hard at your commentaries...

Lol. Thank God it was only for Friday
Na Streetinvestor2 get all time award for vawulence.
Vawulence just dey sweet his belle, na his second moniker 😁

crownprince2017:
I remember when I first hit this market na mcy they put me through, small thing I don't mail her, but seriously have been they look for a way to try and pay you back.

Anytime I have privilege information about a company listed here, you will be the first to be informed, that VFD info that time I no see am do well.

If I tell you how much that capital is now..

Wow! All thanks to God Almighty.
Will be counting on your words for the privilege info.

Meanwhile, the bolded is not hard nah.....
Just request for my aza....
Issa simple stuff 😁