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Geregu Power Stops ‘Rolling’ at 52 Week High

Amidst negative price swings in the stock market, Geregu Power Plc have hibernated and the decline in market valuation has persisted for months.   The market value of Geregu Power PLC has stopped rolling since unit price peaked at #1000—its peak price over the last 52 weeks on the Nigerian Exchange.

The stock has never dropped below its launch price, and on the local exchange, its 52-week low was more than N280 per share. The volume of Geregu Power shares traded has been limited to propel price adjustments. The last record showing dealings by an insider posted on the Nigerian Exchange showed that its majority shareholders increased interest in the company.

Details from the notification sent to the regulator revealed that Amperion Power Distribution bought an additional 630,00 shares for N900 – few days after the company’s earnings release. Since then, transaction volume has been very low.

When the company entered the stock market in October 2022, it had 2.5 billion outstanding shares at a price of #100 each. In the first quarter of 2024, Geregu Power PLC market valuation has surged significantly, settling at N2.5 trillion.

But since then, the market has pulled a plug on the power generating company with an unchanged price despite the recent volatility. Although some analysts believe this big mover is overpriced, Geregu Power’s earnings scorecard shows that it is performing well.

The company outperformed its guidance in the first quarter of 2024 by 160%. Earnings per share skyrocketed by 307% year on year to N5.78 from N1.42 posted in the first quarter of 2023. The company projected a first quarter 2024 profit of N14.46 billion, a narrow distance from N16 billion profit the power generation company declared in 2023.

Its Q1-2024 strong earnings performance was propelled by a surge in the top line. In its unaudited financial statement, management revealed that revenue grew to N50.482 billion in Q1-2024 from N14.230 billion in the comparable period in 2023. This corresponds to an annual revenue growth of roughly 255%.

Profit before tax surged to N21.90 billion at the end of the first quarter of the year. This translates to an annual growth rate of more than 308% above N5.365 billion it posted in Q1-2023.

Despite the fact that it has hit an overbought point by virtue of stalling market price movement, the seemingly closely held power generating stock remains expensive for new entrants. #Geregu Power Stops ‘Rolling’ at 52 Week High Equities Market Wrap: Investors Sentiment Remains Downbeat
The post Geregu Power Stops ‘Rolling’ at 52 Week High appeared first on MarketForces Africa.

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