NASCON Rises as Investors Take Position After Dividend Notice
NASCON Allied Industries (Ticker: NASCON) experienced a significant boost in its stock price, reaching ₦44 per share, marking a 5.9% increase from the previous closing price of ₦41.55.
Early in March, NASCON declared a final dividend of N2.00 for every share of 50 kobo, subject to appropriate withholding tax and approval will be paid to shareholders whose names appear in the Register of Members as at the close of business on April 16, 2025.
But its share has been flattish before it started picking, settling higher by about 6% after more than 1.652 million shares valued at N70.871 million exchanged hands in the market.
Trading at significant discount to its 52-week high in the equities segment of the Nigerian Exchange, NAASCO’S positive price movement has lifted its market value to N118.906 billion.
This uptrend signals growing investor confidence in the company’s earnings performance and market prospects. NASCON opened at ₦41.55 in the equities market and quickly gained traction, hitting its day’s high of ₦44 while maintaining a low of ₦42.05.
The stock recorded a trading volume of 1,478,022 shares valued at ₦63.46 million in the local bourse. This bullish movement aligns with the company’s 52-week trend, where NASCON has demonstrated resilience, reaching a yearly high of ₦51.96 and a low of ₦28.
The stock’s consistent performance in recent days has contributed to heightened investor interest. Over the past trading sessions, the stock has maintained a relatively stable trend, fluctuating between ₦41.4 and ₦41.6 before experiencing today’s breakout.
The trading volume varied significantly, with over 2 million shares exchanged yesterday, signaling increased market participation before the price surge.
The consistent demand for NASCON shares indicates growing confidence in the company’s fundamentals and future prospects. The consumer goods stock has maintained a strong market presence, backed by solid financials and a robust operational strategy.
With NASCON nearing its 52-week high, investors are betting on further price appreciation. The high activity signals retail investor accumulation. Analysts expressed that NASCON’s upward momentum could continue if the bargain hunting remains ahead of first quarter of 2025 earnings release.
In 2024, NASCON reported a 11.4% year on year growth in earnings per share to N5.77 from N5.18. The outturn was driven by the marked revenue growth recorded in the period.
The company announced a final dividend of N2.00/share, representing a dividend yield of 4.8% based on the closing price of N41.80/share on 4 March.
The company’s revenue grew by 48.9% year on year in 2024, driven by the improved segment performance. Revenue from salt business jumped by +49.4% and Seasoning sales performance rose by +41.8%.The company’s gross margin declined by 871bps to 46.1% due to the faster pace of growth in cost of sales to revenue growth.
The growth in the cost of sales was driven primarily by the 78.1% increase in the cost of raw materials and Manufacturing expenses (reflecting higher commodity prices, weaker currency, and higher energy prices amid the highly inflationary environment.
The company recorded a net finance income of N613.26 million as against a net finance cost of N507.81 million in 2023. The print was supported by a 93.4% y/y increase in interest income amid a 17.7% y/y decline in interest expenses.
Overall, PBT rose by 14.9% y/y to N23.65 billion from N20.59 billion in 2023. Following a tax expense of N8.07 billion, profit after tax printed at N15.58 billion in 2024, 13.5% above N13.73 billion net income in 2023. On May 9 2025, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at April 16, 2025. #NASCON Rises as Investors Take Position After Dividend Notice#
