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While the consumer goods industry is the hardest hit by a harsh and unpredictable macroeconomic environment, the broader market selloff has created an opportunity for many stocks.
Tremendous opportunity arises whenever stock sell off arises, but investors with weak stomach for volatility are advised to sit on the side-lines and watch.
Investment House Cordros Securities Limited have a Buy ratings on Dangote Sugar (DANGSUGAR), Flour Mills of Nigeria (FLOURMILL), NASCON Allied Industries (NASCON) and PZ Cussons Nigeria (PZ), while we have ‘HOLD’ ratings on Nestle Nigeria (NESTLE) and Unilever Nigeria (UNILEVER).
Dangote Sugar’s shares traded at 7.67 times earnings while share price closed at N10.35 as of 2:00 pm Lagos-July 16 2019-; revenue for the first three months through March 2019 dipped by 7.24 percent.
The valuation trend of the producer of the sweetener shows revenue fell by 26.44 percent in December 2018 as price to earnings stood at 6.58 times, and the share price closed at N21.80 as of March 20 2018.
As of March 20 2017, Dangote Sugar shares traded at N6.50, while P/E ratio was 5.41 times earnings; revenue grew by 20.44 percent as at December 2017. As of March 20 2016, its shares traded at N5.70 as revenue spiked by 67.95 percent; P/E ratio stood at 6.12 times in the period under review; Revenue in that period was up 6.53 percent in December 2016.
NASCON Allied Industries shares closed at N15.50 as of 2:00 pm in Lagos-July 16 2019- while the shares traded at 9.80 times earnings; sales for the first quarter of 2019 were flat. The company’s P/E ratio stood at 10.39 times earnings in 2018 while shares closed at N21.70 as of March 20 2018; revenue as at December 2018 fell by 4.80 percent.
As of March 20 2017, the … Read More...