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5 Best Materials Stocks in Kenya

Analyst Team trader
Updated 27 Oct 2022

Positive tendencies, as emphasized by the overarching Vision 2030 program, have surfaced throughout the preceding year for the Kenyan government’s continuous push for industrial expansion, particularly in the textiles, construction materials, and food processing industries.

The Ministry of Industrialization and Enterprise Development (MOIED) of the Kenyan government is in responsibility of advancing the manufacturing industry in line with the objectives of Vision 2030.

These objectives include building an integrated steel mill to support the nation’s iron and steel industry, increasing the manufacturing sector’s annual GDP contribution by at least 10% until 2030, and developing a number of business parks to support the country’s expanding industrial, technological, manufacturing, and agricultural sectors.

Small and medium-sized firms (SMEs) play a crucial role in the industrialization goal of Vision 2030 because they generate 80% of all new jobs and 33% of the value-added commodities.

We have compiled a list of the top 5 materials stocks in Kenya based on the sector’s development prospects.

Best Materials Stocks in Kenya


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5 Best Materials Stocks in Kenya

1. BOC Kenya Limited (BOC)

Overview

BOC Kenya Limited, a Kenyan chemical company and Linde Group affiliate, is listed on the NSE.

BOC Kenya Limited

BOC Kenya Limited and its subsidiaries serve public and private hospitals, food processors, civil and mechanical engineering contractors, automobile body manufacturers, hotels and restaurants, and SMEs.

BOC Kenya Limited offers a variety of gases, mixtures, equipment, and services in the Basic Materials value chain. This include engineering services and packaged gases. This portfolio includes O2, N2, and LPG.

BOC Kenya Limited trades at 70.00 Kenyan Shillings per share on the NSE (KES).

BOC Kenya Limited is worth 1.37 billion KES, has a Price/Profit ratio of 13.44, and earns 5.21 KES per share. Shares totalled 19.5M.

B.O.C Kenya Limited's operating income was 109 million KES, up from 11 million the previous period. We made 87,000,000 KES throughout the time.

BOC Kenya Limited's expanding earnings per share and consistent profitability should lead to increased dividends and profits.

Analysts predict the Basic Materials industry to continue its upward trend, with market share and trading volumes increasing.

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2. Bamburi Cement Limited (BAMB)

Overview

Cementia Holding and the Blue Circle in British Kenya founded Bamburi Cement in 1951. The company makes and sells cement and related products. In Kenya, Bamburi Cement Limited turned a reclaimed quarry site into a park.

bamburi cement

Bamburi Cement Limited offers ready-mix concrete, paving blocks like BamburiBLOX, and pre-cast mould goods such drainage and edge restraints, fencing, and walling.

Bamburi Cement Limited, a LafargeHolcim Limited subsidiary, trades on the NSE under the ticker BAMB.

Bamburi Cement Limited operates in Industrials and Construction – Raw Materials.

Bamburi Cement Limited has two divisions in Kenya and Uganda. Both industries produce and distribute cement.

Bamburi Cement Limited's market value is 13.4 billion KES based on its 37.00 KES share price, 12.80 KES P/E ratio, 2.89 KES EPS, and 363 million outstanding shares.

Bamburi Cement Limited had a first-half profit of 1,131,000,000 KES and sales of 19,600,000,000 KES. First-half 2022 operational income was 1,131,000,000 KES against 18.4,000,000 KES in revenue costs.

After taxes, the company's pre-tax profit was 1,109,000,000 KES. EPS was 1.86 KES normalized and 776 million KES excluding ExtraOrd Items. 776 million KES was quarterly net income.

Real-time BAMB chart analysis suggests improved short- and long-term performance. Bamburi Cement Limited investors can feel encouraged after hearing its good EPS report.

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3. Carbacid Investments Limited (CARB)

Overview

Carbacid Investments Limited manufactures and sells dry ice and CO2 for food, industry, and medicine. In addition, the company mines and sells gas and invests.

Carbacid Investments Limited

Carbacid Investments Limited offers food-grade CO2, industrial and medical CO2, dry ice, and cylinder testing and validation. Food-grade carbon dioxide benefits breweries and other enterprises that use safe drinking water.

Carbacid Investments Limited uses compressed carbon dioxide in welding and fire extinguisher applications. The company offers cylinder cleaning, drying, dry ice blasting, and painting.

Carbacid Investments Limited's shares trade on the NSE under the ticker CARB. Carbacid Investments Limited works in chemical manufacturing and basic materials.

Carbacid Investments Limited is worth 2.85 billion KES at 11.20 KES per share. The company has 255 million outstanding shares and a P/E ratio of 8.82 KES.

Carbacid Investments Limited reported strong midyear sales in January. Carbacid Investments Limited's revenue rose from 320 million to 449 million KES.

Carbacid Investments Limited is likely to continue its significant financial success when the global economy recovers from the Covid-19 pandemic.

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4. Crown Paints Kenya (CRWN)

Overview

Crown Paints Kenya Plc sells paint and PVA emulsion. In addition, the company produces paints, thinners, intermediate goods, road marking paints, and more.

Crown paints Kenya

Crown Paints Kenya Plc's decorative paints are used both aesthetically and protectively in homes and businesses. It also makes road marking products for roads and car parks.

Industrial and thinner products are used in coating systems for substrates in harsh temperatures, hostile conditions, and chemically treated manufacturing plants.

Crown Paints Kenya Plc is worth 2.14 billion KES based on its current share price of 30.00 KES. The company's P/E ratio is 3.56 KES, and it has 71.2 million outstanding shares.

According to CRWN's live chart, short-term but not long-term forecasts are up.

Crown Paints Kenya Plc investors can rest comfortable that buying CRWN stock will return a profit, as the company has increased earnings per share.

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5. Flame Tree Group Holdings (FTGH)

Overview

Flame Tree Group Holdings Limited is a Kenyan based company that creates plastic water tanks and cosmetics. It's quoted on the Nairobi Securities Exchange (NSE). The 1989-founded Flame Tree Group Holdings Limited went public on January 1, 2015.

Flame Tree Group Holdings Limited

FTG Holdings Ltd. owns Flame Tree Group Holdings Ltd. Flame Tree Group Holdings Limited currently offers more products and services across the Basic Materials value chain.

These items and services include cosmetics and toiletries such creams, nail polishes, lotions, and moisturisers, as well as plastic water storage products like Roto Tanks, Jojo Plastics, Zoe, Cerro, Alana Skin, Siora, Happy's, and Buildmart.

Flame Tree Group Holdings Limited has a 219 million KES market capitalization, a Price/Earnings ratio of 3.38, and earnings per share of 0.40 KES. At day's conclusion, 162,000,000 shares were available.

Flame Tree Group Holdings Limited stock buyers and sellers should expect increased dividends and earnings as the company's profits rise.

Analysts expect the Basic Materials industry to continue its recent upward trend in performance, with market share and trading volumes growing.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.