Dangote Cement Sees Fast, Furious Spike in Market Valuation
Dangote Cement Plc’s market value skyrockets as billionaire Femi Otedola stepped into the ring as a shareholder, in what appears to be a kind support for its ally, Alhaji Aliko Dangote, to reclaim its Africa’s richest man ID.
In the just concluded week, improved investor sentiments drove its share price upward by 28.8% over five trading sessions. The cement company’s share price closed at N694.10 from N538, details from the local bourse revealed a strong positive movement.
As a result, the market valuation of the cement company which controls more than 60% of the entire demand in the Nigerian market inched near N12 trillion ahead of earnings release. There could be further surges except stock market corrections kickstarted before earnings release.
Otedola who is known not to play second fiddle in corporate investment turned 360 degrees to acquire shares in Dangote Cement – the top members of the cement oligarchy. At the close of the trading session on Friday, the cement company share was priced at N694.1 following unusual trade volume that has been pushing the stock price upward.
Data from the local bourse showed that Dangote Cement Plc has increased to more than N11.8 trillion, more than twice the valuation of the company a few months ago. Analysts are projecting further re-rating of Dangote Cement Plc due to its strong dividend history, which is one of the numerous claims made by Otedola who developed a last-minute interest in Nigeria’s cement industry’s dividend aristocrat.
Its financial year earnings projections appear positive across investment banking firms reviewed by MarketForces Africa with strong buying recommendations. Analysts however the company’s increased leverage position, especially, foreign currency exposure which affects its earnings scorecard in 2023. #Dangote Cement Sees Fast, Furious Spike in Market Valuation
