Presco Plc has officially joined the elite group of Nigerian Exchange (NGX)-listed companies with a market capitalisation exceeding ₦1 trillion following sustained investor interest and solid financial performance.
The company’s stock rose by 1.52% on Tuesday to close at ₦1,000 per share, pushing its market value to just over ₦1 trillion.
This development makes Presco the seventh company to reach the trillion-naira milestone in 2025, following Access Holdings, Nigerian Breweries, International Breweries, Fidelity Bank, Stanbic IBTC and Nestle Plc.
The rally in Presco’s shares has been driven by strong earnings momentum, strategic expansion through acquisitions and sustained investor confidence. Year-to-date, the stock has gained 111%, up from ₦475 at the start of the year, outperforming key sector peers and broad market indices.
Meristem Research has maintained a bullish outlook on the stock, setting a 12-month target price of ₦1,062.52, indicating further potential upside. CardinalStone Securities also reiterated the company’s growth prospects ahead of its half-year earnings report.
Kayode Eseyin, Research Analyst at CardinalStone, said: “If they report strong earnings growth—which I think they would—we can see some price action.”
He attributed part of the performance to Presco’s acquisition of Ghana Oil Palm Development Company (GOPDC), describing it as a key earnings catalyst. “Their inorganic expansion strategy is driving earnings higher,” Eseyin added.
In FY2024, Presco reported a net income of ₦77.8 billion, supported by a revenue increase to ₦207.5 billion.
In the first quarter of 2025 alone, the company has already delivered ₦47.6 billion in net income, representing over 61% of its full-year 2024 earnings.
At its current share price of ₦1,000 and an earnings per share (EPS) of ₦47.58, the stock trades at a price-to-earnings (P/E) ratio of 21.0x. This multiple, while elevated, reflects increased investor confidence and strong forward earnings visibility.
Presco has also declared a final dividend of ₦42 for FY2024, translating to a dividend yield of approximately 4.2% at the prevailing market price.
Operationally, Presco has demonstrated exceptional efficiency, with a return on average equity (ROAE) of 97.6%, indicating superior capital deployment and profit generation relative to shareholder equity. This positions the company well above industry benchmarks and affirms its leadership within the agribusiness segment of the exchange.
Meanwhile, Okomu Oil, the other major player in Nigeria’s palm oil sector, has also posted gains this year, up 46.4% year-to-date. Despite Presco’s superior profitability and valuation milestone, Okomu trades at a higher P/E ratio of 28.5x, based on its EPS of ₦22.79 and current price level.
Presco’s expansion into regional markets through its GOPDC acquisition, coupled with robust domestic demand and efficient cost management, continues to strengthen its market position and attract institutional capital.
With strong fundamentals, improved earnings capacity, and strategic expansion, analysts expect Presco to remain a key value driver in the agribusiness segment of the Nigerian Exchange.
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