Business Nigeria: Hot Stocks to Buy for High Profits

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LequteMan

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Among the week's hottest investments, there are 3 stocks to buy for high profit and sell for even higher , NATIONAL MIRROR says.

The valuation of these stocks and the challenges to profitability makes the stock very attractive. The parameters used for these choices are prior prices, volume data, dividend payout and other fundamentals which include company’s growth, revenues, earnings, management and capital structure:

1. MRS Oil Plc:
MRS Oil Nigeria reported revenue of N69.243bn in its third quarter of 2014 result, compared with N69.713bn posted in the preceding year 2013, translating to a marginal decrease of -0.67 percent. However, its profi t before tax rose by +865 percent from N129.311m to N1.248bn and profi t after tax leapt by +528.84 percent to N577.237m from N91.794m previously. With this trend, it might be able to sustain its current dividend payout of 75 kobo per share or surpasses it at the end of the year. Its Net Assets rose by +2.14 percent from N19.629bn to N20.049bn.

In its audited result, revenue grew from N79.727bn in the preceding year to N87.786bn, translating to an increase of +10.11 percent. Profi t before tax rose from N378.755m previously to N1.407bn, an increase of +271.52 percent. Similarly, its profi t after tax also leapt by +209.29 percent from N205.121m previously to N634.418m. Earnings per Share (EPS) grew by +208.39 percent from N2.50 last year to N0.81. Dividend pay-out was 75 kobo per share as opposed to 23 kobo per share last year, an increase of +226.09 percent.

2. Portland Paints Plc: This is one of the leading paint manufacturing companies in Nigeria. Its price resurgence was as a result of its profitability in the third quarter financial profile.

In its audited report, it recovered from a loss of N223m in 2012 to a profit of N108m in 2013. Its revenue dipped marginally by -3.3 percent from N2.865bn in the preceding year to N2.771bn. However, its gross profi t rose from N1.181bn in the preceding year to N1.308bn, translating to an increase of +10.8 percent. Its working capital adjustment went-up by +367 percent to N565.602m from N121m. Its Net Assets also grew by +13.8 percent from N776.565m previously to N884.039m.

3. Flour Mills Plc: In its audited report, its revenue grew from N258.268bn in the preceding year to N301.941bn, translating to an increase of +16.91 percent. Profi t before tax slumped from N11.803bn previously to N11.165bn, a decrease of -5.40 percent. Similarly, its profi t after tax also dipped by -0.45 percent from N7.761bn to N7.726bn. It appropriated a dividend of N2.00 per share as opposed to N1.60 kobo per share last year, translating to an increase of 25.00 percent.

#Nigeria

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