Dangote Cement Slides on Post-AGM Sell Pressures
Dangote Cement Plc’s market value declined by more than N253 billion in the equities market as investors exited positions ahead of the second quarter of 2025 earnings season.
The share price of Dangote Cement declined to N425 on Tuesday after data showed 729,630 units valued at N310.483 million were traded on the Nigerian Exchange.
Hence, Dangote Cement Plc.’s 16.873 billion shares outstanding in the market were valued at N7.171 trillion after it lost N253.103 billion from an open market value of N7.4243 trillion.
At the current market valuation, Dangote Cement is trading at 28% of its 52-week high in the local bourse. The company shareholders recently approved N30 dividend for the financial year 2025 for one of the pricey listed companies stock in the market.
Last month, Dangote Cement paid shareholders N502.6 billion in dividends for the financial year 2024, it said in a statement made available to MarketForces Africa.
More than 85% of the sum is expected to go to Dangote Industries Limited, the majority shareholder, according to the company register of members.
In a note, CardinalStone Securities Limited told investors that Dangote Cement Plc is expected to continue to experience price-induced top-line growth in 2025 despite projected volume weakness driven by the Pan-African operations.
The investment firm stated that the company’s cost initiatives, such as the alternative fuel scheme, use of CNG trucks, and trimming of financial liabilities are also expected to support margins, dovetailing to a mean gross margin of 59.1% across its forecast horizon that is also consistent with capacity expansions in the medium term.
“All considered, we see legroom for mean return on asset (ROA) and return on equity (ROE) of 16.7% and 38.4% over the next half decade as against 10.1% and 24.2% in previous forecasts.
Equities analysts at CardinalStone Securities Limited revised its 12-month target price for Dangote Cement to N481.33, a significant decline of 10% from N493.77 previously estimated. The estimated target price of the cement company was 9.4% upside to the reference price of N440.00.
Group cement volumes fell by 6.7% year-on-year to 6.8 Mt in the first quarter of 2025, largely weighed down by Pan-African operations, according to CardinalStone Securities Limited.
Analysts noted that the region experienced a 10.0% contraction in volumes to 2.4Mt, especially following the temporary halt in government infrastructure projects due to delayed budget approval in Ethiopia.
“Pressures in South Africa and Senegal also contributed to the weak output. The former was impacted by uncertainties after the general elections, sluggish pick-up in economic activities, and heavy rainfalls.
“The latter was dragged by the launch of a land audit, delays in government payments to the construction sector, and shrinking project pipelines”, the investment firm said in its company update.
In view of the slow starts in these markets, analysts have revised 2025 Pan-African volume forecast to 10.1Mt (from 11.1Mt previously and 11.1Mt in FY’ 2024). #Dangote Cement Slides on Post-AGM Sell Pressures #
