Agriculture Stocks: PRESCO and OKOMUOIL Top as LIVESTOCK Records -34.65% YTD loss


Monday 30  November, 2015, 03:48 AM /TheAnalyst

The Agricultural sector has been identified as one of the sectors that can help drive the Nigerian Economy at this critical time that crude oil as a major source of revenue for the nation is falling at the international market.

The present administration has reiterated that we must return to agriculture as it has become evident that oil and gas will no longer be sufficient as a major revenue driver for the country.

While launching the
CBN Anchor Borrowers’ programme, President Buhari stated that the current reality in the global oil market left Nigeria with no option than to diversify into other productive sectors with agriculture identified as one of them.

In the latest
Q3 GDP report released by NBS, agriculture sector grew by 9.33% driven by output in crop production which accounted for 83.35 of the overall growth of the sector, while the agriculture sector contributed 24.5% to nominal GDP in Q3 2015. With more investments in this sector, things can only get better.

CBN Governor while briefing the media after the 247th MPC meeting held on 23rd and 24th November, 2015 stated that going forward; the MPC agreed that any attempt by the CBN at easing liquidity into the system shall be directed at targeting four key areas of the economy which include real sector, infrastructure, agriculture and solid minerals.

He further emphasized that liquidity arising from the reduction in the CRR to 20 per cent, will only be released to the banks that are willing to channel it to employment generating activities in the key areas of the economy mentioned above

Analysis on the YTD price performance of agriculture stocks reveals that
PRESCO tops the table with +26.53% gain as OKOMUOIL follows with +6.51% while LIVESTOCK records -34.65% YTD loss. FTNCOCOA and ELLAHLAKES both closed flat

A review of EPS ratio of the agriculture stocks reveals that 
PRESCO tops based on EPS and closely followed by LIVESTOCK, while FTNCOCOA and ELLAHLAKES lead otherwise with negative EPS.

PE Ratio review of the agriculture stocks revealed that
LIVESTOCK and PRESCO top the table, while FTNCOCOA and ELLAHLAKES recorded the least ratio figure.

LIVESTOCK tops agriculture stocks Return on Equity (RoE) ratio, while ELLAHLAKES recorded the least ratio with a negative figure.

PRESCO tops agriculture stocks PAT Margin as LIVESTOCK follows on the ladder, while ELLAHLAKES and FTNCOCOA recorded the least percentage figure.

Related NEWS


1.       CBN Communique No. 104 of the MPC Meeting - Nov 23 – 24, 2015

2.      Pres. Buhari launches CBN Anchor Borrowers' Programme – Nov 18, 2015

3.      Nigeria GDP grew by 2,84% (y-o-y) in real terms, marginally higher than Q2 ‘15 – Nov 17, 2015

4.      Agriculture Stocks: 3 out of 5 Records Positive YTD Gains as OKOMUOIL Tops With +7.50% - Apr 27, 2015

5. Agriculture Stocks: PRESCO Tops on EPS, ROE and PAT Margin while LIVESTOCK Records -15.35% YTD Loss – Mar 23, 2015 

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