Despite a generally bullish year for the Nigerian Exchange (NGX) in 2024, several stocks underperformed significantly. While the NGX All-Share Index (NGXASI) delivered an impressive 37.65% year-to-date (YtD) return, gains were uneven across sectors.
The Oil and Gas Index emerged as the top performer, soaring by 160%, while the Banking Sector Index lagged with a modest 20% YtD growth. Meanwhile, certain stocks, including Multiverse, Dangote Sugar, NASCON, and C&I Leasing, experienced sharp declines, raising questions about their potential recovery in 2025.
Multiverse: Cautious Optimism
After a 60.42% decline in 2024, Multiverse has rebounded with a 51.7% YtD gain in 2025. The company reported a 159% year-on-year (YoY) surge in profit before tax to ₦223 million and strong operating cash flows of ₦464 million. However, its high price-to-earnings (P/E) ratio of 147.5x raises concerns about overvaluation. While Multiverse shows promise, investors should remain cautious and wait for stronger fundamentals.
Dangote Sugar: Challenges Amid Recovery
Dangote Sugar recorded a steep 42.98% drop in 2024 but has gained 18.46% YtD in 2025. Improving liquidity, with trading volumes reaching 117 million shares valued at ₦4.01 billion, signals positive momentum. However, rising debt and foreign exchange losses continue to weigh on profitability. The company’s Backward Integration Plan (BIP) remains critical for long-term growth, but execution timelines will be pivotal.
NASCON: Signs of Stability
NASCON’s stock fell by 41.62% in 2024 but has shown resilience with a 22.8% YtD gain in 2025. Despite a 16.33% drop in profit before tax during the first nine months of 2024, the company maintains moderate volatility and steady trading activity. Elevated valuations amid declining earnings suggest cautious optimism for its recovery.
C&I Leasing: Positioned for Growth
C&I Leasing saw a 32.5% decline in 2024 but has started 2025 on a strong note, gaining 17.8% YtD. Robust trading activity and a 197% YoY increase in profit before tax, supported by gross earnings growth of 179%, highlight the company’s recovery potential. Cost optimization and asset efficiency are expected to drive further improvements.
What to Expect in 2025
As these stocks attempt to recover, their distance from 52-week highs offers insights into potential upside opportunities:
- Multiverse: Currently 34.12% below its peak of ₦17 but showing recovery signs with profit growth.
- Dangote Sugar: Trading 53.4% below its high of ₦82.65, with recovery dependent on addressing debt and operational inefficiencies.
- NASCON: Down 49.87% from its high of ₦75, showing resilience but facing profitability challenges.
- C&I Leasing: Just 7.5% off its high of ₦4.65, suggesting potential for stable growth if current momentum persists.
Investor Takeaway
The turnaround potential of these stocks hinges on improved fundamentals, strategic execution, and favorable market conditions. While early gains in 2025 suggest a recovery path, investors should carefully analyze each stock’s valuation, liquidity, and growth prospects before making decisions.
The performance of Multiverse, Dangote Sugar, NASCON, and C&I Leasing will be a focal point as the Nigerian stock market continues to evolve in 2025.
