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5 Best Materials Stocks in Nigeria

Analyst Team trader
Updated 27 Oct 2022

The materials industry includes businesses that make goods used in manufacturing. These businesses include those that produce mining and forest products as well as building supplies, chemicals, and packaging.

Nigeria’s economy is changing and moving away from being a primary-based economy that depends on agriculture and extractive industries like oil and gas to one that generates more GDP from manufacturing or secondary industries and more services in the tertiary sector.

This article examines the top 5 materials stocks in Nigeria within the context of the country’s changing economic climate.

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5 Best Materials Stocks in Nigeria

1. Cutix Plc (CUTIX)

Overview

The Nigerian Stock Exchange lists Cutix Plc (NGX). Cutix Plc makes PVC, XLPE, and PE power cables at Otolo, Nnewi.

Cutix Plc

Copper conductors, copper cables, PVC-insulated single/double sheathed-core aluminium cables, PVC-insulated and sheathed flat twin/three-core copper cables, aluminium twist cables, automotive cables, and flexible cables for household electrical appliances and wiring of fixtures and appliances now make up Cutix Plc’s diversified portfolio of products and services.

On the Nigerian Stock Exchange, Cutix Plc stock is 4.95 Naira per share (NGX).

Cutix Plc has a market capitalization of 8.72Billion NGN, a Price/Earnings ratio of 19.04, and earnings per share of 0.26 NGN. 1.76 billion shares were issued.

Cutix Plc’s expanding earnings per share and consistent profitability will boost dividends and earnings for investors.

Cutix Plc’s real-time stock price indicates that experts expect the company’s Industrial Goods sector to continue demonstrating great performance as trade volumes rise.

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2. Dangote Cement Plc (DANGCEM)

Overview

Dangote Cement Plc is the largest company on the Nigerian Stock Exchange (NGX). The company started out as Obajana Cement Plc.

Dangote Cement Plc

Dangote Cement Plc makes, packages, and distributes cement for Nigeria’s limestone mining, coal production, and real estate investment industries.

It operates the Obajana Cement Plant, sub-Saharan Africa’s largest, and exports its goods.

Dangote Cement Plc produces, manufactures, and distributes cement and allied items.

Exploration, coal production, cement grinding, power generating, and limestone mining are part of the Company’s daily activity (Nigeria and Pan Africa).

Dangote Cement Plc shares are trading at 280.00 NGX per share (NGN).

Dangote Cement Plc has a 4.77 trillion NGN market capitalization, a price-to-earnings ratio of 444.44, and earnings per share of 0.63 NGN, according to its financial disclosures. Total shares issued: 17 billion.

As Dangote Cement Plc’s EPS and long-term profitability improve, so will dividends and profits.

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3. Ellah Lakes Plc (ELLAHLAKES)

Overview

Ellah Lakes Plc, previously a fish farm, now focuses on oil palm cultivation and processing (NGX).

Ellah Lakes Plc

Ellah Lakes has provided high-quality, sustainably obtained seafood to Nigerian families for decades, setting the benchmark for environmental responsibility and ensuring that Mother Nature will continue to replenish her resources to meet the requirements of a growing population.

Due to unrest in the Niger Delta led Ellah Lakes Plc to close in 2016. Ellah Lakes bought Oil Palm producer Telluria Farms in May 2019 and refocused its efforts on palm oil and by-products. Ellah Lakes now controls 2,400 hectares for oil palm plantation.

Ellah Lakes Plc began with oil palm and its by-products but has since grown into other agricultural regions.

Ellah Lakes Plc shares are 4.25 Nigerian Naira each on the NGX (NGN).

Ellah Lakes Plc has a market capitalization of 8.5 billion Nigerian naira (NGN), a price-to-earnings ratio of zero, and zero earnings per share. 2 billion shares circulated.

Ellah Lakes Plc lost $832,136 in July, according to its financial documents.

The company’s total assets went from $5.63 billion NGN to $10.08 billion NGN, and its cash and cash equivalents also increased.

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4. DN Tyre & Rubber Plc (DUNLOP)

Overview

DN Tyre & Rubber Plc sells auto tyres. Dunlop Nigeria Plc became DN Tyre & Rubber Plc in 2009. The company lists on the Nigerian Stock Exchange (NGX).

DN Tyre & Rubber Plc

DN Tyre & Rubber Plc’s product and service offerings span a wider variety of the consumer products value chain than before, including automotive, minivan, SUV, and truck/bus tyres.

DN Tyre & Rubber Plc shares are NGN 0.20 on the Nigerian Stock Exchange (NGX).

DN Tyre & Rubber Plc has a 955,000,000 NGN market value, a Price/Earnings ratio of 1.54, and earnings per share of 0.13 NGN. 4.7 billion shares were issued.

DN Tyre & Rubber Plc stock purchasers and sellers should expect higher dividends and earnings as the company’s profits rise.

Real-time DN Tyre & Rubber Plc data shows analysts expect the consumer products industry to continue improving, with market share increasing as trading volumes climb.

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5. Presco Plc (PRESCO)

Overview

Presco Plc works in a wide range of activities, such as expanding oil palm plantations, milling palm oil, processing palm kernels, and refining vegetable oil.

Presco Plc

The oil palm estates of Presco Plc include a refinery/fractionation facility with a capacity of more than 100 tons/day, a palm oil mill with a capacity of more than 60 tonnes of fresh fruit bunches/hour, and a palm kernel crushing plant with a capacity of roughly 60 million tons/day.

In the Sakponba Estate, 2,800 hectares are owned by Presco Plc, while 12,560 hectares are owned by the Obaretin Estate. Together, these concessions comprise 17, 000 hectares.

Presco Plc, a division of the Belgian agro-industrial conglomerate Siat, focuses mostly on the administration of smallholder oil palm and rubber tree farms.

In the Consumer Goods value chain, Presco Plc currently offers a greater selection of goods, such as palm oil that has been refined, bleached, and deodorized, palm olein, palm stearin, palm fatty acid distillate, crude and refined palm kernel oil, and palm kernel cake.

Currently, Presco Plc shares are going for 88.90 Nigerian Naira each (NGN). The company is valued at 88.9 billion NGN on the market with a P/E of 33.55 and an EPS of 2.65 NGN. The public may purchase a total of one billion shares.

Presco Plc stock holders can relax knowing that the business has a track of growing profits per share and maintaining a high level of profitability over time, both of which are encouraging signs for future dividends and earnings.

According to Presco Plc’s real-time stock price, analysts anticipate that the firm will continue to do well in the Consumer Goods industry, with market share growing along with trade activity.

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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.