Presco Crosses ₦1 Trillion Mark, Analysts See More Room to Climb

Presco Plc has joined Nigeria’s growing list of trillion-naira companies, closing at ₦1,000 per share on June 17 and pushing its market capitalization above ₦1 trillion for the first time. The milestone comes amid a wave of investor enthusiasm, with Meristem Research setting a bullish target price of ₦1,062.52 and other analysts pointing to continued growth ahead of the company’s half-year earnings.

With a year-to-date stock gain of 111%, Presco has become one of the Nigerian Exchange’s top performers in 2025. Much of the rally is underpinned by robust fundamentals: a 2024 net income of ₦77.8 billion and a revenue jump to ₦207.5 billion. In just Q1 2025, the company has already delivered ₦47.6 billion in net profit—more than half of last year’s total.

This performance gives Presco a price-to-earnings (P/E) ratio of 21.0x, based on its EPS of ₦47.58, signaling strong investor confidence despite the premium valuation. The company has also declared a ₦42 dividend for FY2024, translating to a dividend yield of 4.2% at current prices.

A Strategic Pivot with Regional Ambitions

Analysts say Presco’s valuation surge isn’t just about financial performance—it’s also about strategic positioning. The company’s acquisition of Ghana Oil Palm Development Company (GOPDC) has expanded its regional footprint and enhanced its earnings base through inorganic growth. According to Kayode Eseyin of CardinalStone Securities, the move is already yielding returns and could spark further upside “if strong earnings growth continues into H1.”

Presco now becomes the seventh company to cross the trillion-naira valuation threshold in 2025, joining peers like Access Holdings, Nestle Plc, and Stanbic IBTC. Its closest industry competitor, Okomu Oil, is also enjoying a solid year with a 46.4% YTD stock gain, a P/E ratio of 28.5x, and ₦21.7 billion in net income. Yet, Presco’s return on average equity (ROAE) of 97.6% points to superior capital efficiency—a key differentiator that could sustain its valuation edge.

As investors continue to price in future earnings and regional expansion, Presco’s next major catalyst may be its half-year financials, due in the coming weeks.