MeCure Industries Plc Enjoys Post-Listing Gains

The stock market price of MeCure Industries Plc spiked by 61% to N9.21 in the last five trading sessions, data from the Nigerian Exchange shows. The company is now worth N36.84 billion.

The price increase followed sustained interest in the company’s future earnings performance by equities investors. MarketForces Africa reported that Mecure Industries listed 4 billion shares at N2.96 on November 7, 2023.

The recently listed company’s valuation has maintained an uptrend, suggesting it was initially undervalued when it made entry into the Nigerian bourse.

MeCure Industries is catching up with Cruise with surging price – having beat stock market performance consecutively.  In less than three weeks, the share price has inched higher to N9.21, representing a significant growth of more than 211% in just 15 trading sessions in the stock market.

Rather than fundamental, positive sentiment in the newly listed company remains its major stock market catalyst driving its rather too strong stock market price re-rating.

MeCure Industries’ shareholding structure sets a big question mark for authority to answer. Perhaps its undervaluation was deliberate to allow outstanding shares to be spread before achieving the free float requirements of the company listed on the Nigerian Exchange.

In the company, four major shareholders control more than 97% of MeCure Industries Plc’s 4 billion outstanding shares, according to details from its books.

In actual fact, the Udani ‘clan’ controls about 97% of the company’s shareholdings based on the recent unaudited financial statement submitted and reviewed by MarketForces Africa.

Samir Udani, Avni, and Arjun Udani hold 32.20% share each while Anderline Dukor’s stake was 0.68%. Other shareholders control 2.45% of the outstanding shares.

In its 9-month financial statement, MeCure Industries reported N21.577 billion as revenue, out of which the company posted a post-tax profit of N1.987 billion. MeCure Industries recorded a sizeable amount as costs of sales and gross profit.

Its figure showed that costs of sales printed at N14.102 billion, leaving the company with a gross profit of N7.475 billion at the end of September 2023.

The operating profit of the company settled at N4.360 billion due to sizeable expenses relating to marketing and administrative overheads. The company also charged N1.7 billion as finance costs against its income statement. Pre-tax profit was N2.651 billion at the end of the period, and a tax provision of about N665 million reduced its bottom line to N1.97 billion.

On every share deployed for operation in the period, Mecure Industries earned less than 50 kobo, according to its financial statement for 9 months in 2023 #MeCure Industries Plc Enjoys Post-Listing Gains Naira Devaluation Deepens Economic Crisis in Nigeria