Wise investors who took position in Dangote Flour Mills Plc have harvested good returns from the stock. The flour milling company has jumped by 16.60%, from N12.53 per share onn March 1, 2010, to N14.61 per share.
A lot of market analysts believe that Dangote Flour Mills Plc, which commenced operations in 1999 is one of those stocks that would benefit from the current bullish run of the Nigerian stock market.The company is in the business of flour milling, processing and marketing of branded flour. Its product portfolio comprises of Bread flour, Pasta Semolina and Wheat Offals, confectionary flour, among other.Despite the stiff competition in the Nigerian flour milling industry, Dangote Flour has grown to become an industry leader with a market share in excess of 30%wned subsidiaries which are:
In order to maintain its leaderhip position in the industry, the company has continued to implement its aggressive strategies to produce and sell significant volumes thereby ensuring sustainable profitability, as it is able to significantly reduce the fixed cost per unit of its products. It has an experienced and focused management and Board which ensures maximization of returns in products where it has some comparative advantage.
The Company, as other subsidiaries of the Dangote Group, are still exploring new markets and had just embarked on aggressive expansion strategy by investing in additional production plants and a mill. This expansion, has given the Group, the capacity to aggressively penetrate the lucrative export, especially around the West African region. Opportunity to leverage on theStock analysts say that the Dangote Flour stocks is leveraging on the strenght of its affiliates such as Dangote Sugar Refinery and Benue Cement Company.
Also, Benue Cement Company (BBC) another subsidiary of the Danote group has also been upbeat this month, despite the challenge it faced last month when its Company was sealed up management of the Benue State Board of Internal Revenue Services, over an alleged N190million tax evasion. It stock price which resumed the month at N50.01 per share, has appreciated by 16.5%, as against the N57.77per share it ahieved last Friday