Dangote Cement Overtakes Airtel, 11 Others as Most Capitalised Stock on NGX

Kayode Tokede

Dangote Cement Plc has outpaced Airtel Africa Plc, 11 others trillionaire companies as the most capitalised listed stock on the Nigerian Exchange Limited (NGX).

With investors demand for Dangote Cement in November 2024, its market capitalisation reached N8.16 trillion, leading Airtel Africa currently at N8.11 trillion, BUA Foods at N7.11 trillion and MTN Nigeria Communication at N3.57 trillion by market capitalisation.

Dangote Cement, among other stocks have recorded an upward trajectory since the entry of the new administration led by President Bola Tinubu, and it is due to the proactive implementation of reforms such as the removal of fuel subsidy and the liberalization of the foreign exchange market.

Foreign investors and High Network Investors have continued to take positions in these 13 stocks amid Central Bank of Nigeria (CBN) foreign exchange policies as their prices in the past was undervalued on the bourse.

THISDAY gathered that in October 2024, Airtel Africa was the most capitalised listed company when its market capitalisation was around N8.27trillion, followed by Dangote Cement and MTN Nigeria Communication that stood at N8.16 trillion and N7.11 trillion by market capitalisation, respectively. 

The stock price of Dangote Cement in its Year-till-Date performance has appreciated by nearly 50per cent to close November 2024 at N478.80 per share from N319.9per share the stock price opened for trading this year.

The N8.16trillion market capitalistion of Dangote Cement is about 13.8per cent of the N59.107 trillion overall market capitalisation of all listed companies on the Exchange.

Dangote Cement saw a marginal increase in its profit before tax in the nine months ended September 30, 2024 to N406.38 billion as high finance and production costs gulped revenues during the period.

Company in its unaudited financial statement for the period September 2024 where revenue increased by 69.5per cent from N1.51 trillion in the nine months of 2023 to N2.56 trillion in the period under review.

The company’s profit in the period under review rose marginally by less than N2 billion to N406.38 billion from N404.89 billion in the corresponding period of 2023.

Despite a 70per cent increase in revenues, the company only managed to increase profit after tax by a meagre 0.56per cent owing to a near doubling in production cost and more than 100per cent increase in finance cost.

Other trillionaire companies on the Exchange include: BUA Cement, N3.22 trillion; Seplat Energy, N3.12trillion; Geregu Power, N2.88 trillion; Transcorp Power, N2.69 trillion and Aradel Holdings, N2.25trillion.

Guaranty Trust Holding Company Plc, N1.56 trillion; Zenith Bank, N1.4trillion; United Bank for Africa Plc, N1.12 trillion and Transcorp Hotels, N1.09 trillion.