The combined market value of BUA Group’s listed companies surpassed N17.118 trillion at the Nigerian Exchange (NGX), driven by a significant spike recorded by its food producer.
This suggests that the combined market value of BUA Group’s two listed companies in the local bourse accounted for more than 18% of the Nigerian stock market, which printed at N94.56 trillion on Friday.
Even if that’s justified, it’s a level of concentration worth noting. Two leading investment firms downgraded BUA names and told investors to sell down, which are considered relatively overpriced.
BUA Cement Plc, with 33.864 billion shares outstanding in the stock market, was valued at N5.418 trillion, according to details obtained from the Nigerian market.
On the other hand, BUA Foods has more than doubled down on its valuation of its sister company, with N11.7 trillion market value. The two companies are now worth N17.118 trillion in the equities market.
BUA Foods Plc has seen significant re-rating on the Nigerian Exchange, with more uptrend than negative price movement since January 2022 when it listed at N40 per share.
According to trading data from the Nigerian Exchange, BUA Foods share price closed at N650, its highest value in the last 52 week in the local bourse.
BUA Foods has gained 51% year to date up to last week, and BUA cement Plc has delivered an impressive 71% return to shareholders in the same period. Afrinvest Securities Limited considered both listed companies from BUA Group as overpriced, attracting sell ratings.
Giving improved macroeconomic indicators, the market anticipated the release of third quarter earnings to fuel bargain hunting the listed stocks.
BUA Cement is trading at significant discount to its highest value in the market. At the close of trading session last week, the company share price which settled at N160 was 12.56% below its 52-week high of N183.
This suggests potential upside as impressive earnings could drive fresh rally amidst booming trading activities on Nigerian Exchange – with significant numbers investors increasing bets on stocks with solid fundamentals.
In its equity report, CardinalStone Securities Limited think BUA Cement is overpriced as equity analysts recommend investors to sell.
With target price set at N110.03, CardinalStone Securities Limited told investors in its equity report that BUACEMENT is on track to deliver a robust performance in Q3’25 and across the 9M’25 period.
Analysts noted that production volumes have been softer in recent quarters despite the addition of new capacity, the alignment of pricing with peers, after years of strategic restraint to capture market share, should mask the impact of weaker volumes on revenue.
As with other players, BUACEMENT tends to experience weaker output in Q3s, but higher average prices are expected to lift revenue year on year, analysts at CardinalStone said in the update.
They highlighted that the cement company’s margin performance remains a bright spot, noting that BUA Cement has achieved a marked turnaround in profitability this year, aided by cost optimisation, moderating inflation, and the impact of its alternative fuel strategy.
Analysts think BUA Cement also stands to benefit from potential FX-related gains for a second consecutive quarter, following the appreciation of the Naira and its exposure to dollar-denominated obligations under the AFC facility secured in 2023.
Such gains would provide an additional boost below the EBIT line, helping sustain elevated margins relative to 2024 levels, CardinalStone Securities Limited explained. The investment firm also rated BUA Foods a sell, suggesting the company’s share price is also overpriced.
Equity analysts at CardinalStone Securities Limited set the target price of BUA Foods at N481.70, which is significantly lower than the company market price of N650 at the close of the trading session on Friday.
In its Q3 earnings scorecard, CardinalStone Securities expects to see significant revenue growth across key product lines. Specifically, analysts said the Bakery Flour product segment is likely to report a strong volume uplift in the quarter and the rest of 2025.
The reduced emphasis on the sugar product line, which has been weighed down by cost pressures and aggressive competition, has allowed BUAFOODS to focus on improving capacity across more profitable segments.
“We also expect an improvement in margins due to lower inflationary pressures and a benign exchange rate environment. The expected growth in operating income for Q3’25 should mask the decline in FX gains (the company is net long FCY), following the appreciation of the Naira during the period”.
BUA Foods, Cement Surpass N17trn in Market Value, 18% of NGX
