CAP Plc Rallies to Record High on Renewed Investor Confidence
Chemical & Allied Products (CAP) Plc delivered an impressive performance on the Nigerian Exchange (NGX) on Thursday, February 12, 2026, as renewed investor interest and a broadly positive market sentiment propelled the stock to a historic high.
The stock opened trading at N99.20 and gained N9.80, representing a 9.88% upward trajectory and momentum, to close at N109.00. This strong upward movement not only placed CAP at the top of the gainers’ chart for the day but also marked a new all-time high and 52-week high. Notably, the closing price stands significantly above its 50-day moving average of N76.47, reinforcing the strength of the current bullish trend and signaling sustained upward momentum.
Market participation was equally robust. A total of 402,389 shares exchanged hands during the session, underscoring healthy trading interest. At the closing price, CAP’s market capitalisation stood at approximately N42.42 billion, reflecting growing investor valuation of the company’s improving fundamentals and earnings outlook.
The rally is strongly supported by CAP’s solid fourth-quarter (Q4) 2025 performance, which revealed notable year-on-year growth across key financial indicators:
Revenue rose to N44.85 billion, up 23% from 2024.
Gross profit increased to N19.44 billion, reflecting a 32% year-on-year improvement.
Operating profit climbed by 48%, rising by N8.04 billion compared to the corresponding period in 2024.
Profit before tax (PBT) advanced from N6.06 billion to N9.13 billion, representing a robust 51% growth.
These results demonstrate strong topline expansion, improved cost efficiency, and enhanced operating leverage. The widening margin profile suggests that CAP has effectively managed input costs while capitalising on demand growth within the paints and coatings segment.
Technically, CAP’s breakout above previous resistance levels and its divergence from the 50-day moving average confirm a strong bullish structure. The stock’s record high indicates positive price discovery, supported by earnings momentum and heightened investor confidence.
Fundamentally, the 23% revenue growth combined with stronger profit expansion (32%–51% across key lines) signals margin resilience and operational efficiency. If sustained, this trajectory positions CAP favourably for continued earnings growth in 2026, particularly as improved topline performance aligns with broader market recovery and increased construction and infrastructure activities.
However, investors should be mindful of potential short-term profit-taking following the sharp 9.88% daily gain. While momentum remains positive, entry positioning should be guided by risk tolerance and broader market liquidity conditions.
Investor’s Recommendation:
In view of CAP’s strong Q4 2025 earnings performance, improved profitability metrics,
Positive technical breakout and alignment with the prevailing market rally, the stock currently presents a “Buy” on Strength bias for medium-to-long-term investors.
While existing shareholders may consider holding positions to capitalise on further upside potential, in line with new entrants may look for mild pullbacks to optimise entry points.
CAP Plc’s price action on February 12, 2026, reflects not speculative momentum but earnings-backed confidence, positioning the company as a compelling play within the industrial goods segment amid improving market dynamics. #CAP Plc Rallies to Record High on Renewed Investor Confidence#
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