Compared to bellwethers, which are valued at trillions of naira, many Nigerian firms are valued at less than N1 billion on the stock market. The size of their balance sheets, profits, and dividend policies are just a few of the characteristics that set large and small-cap stocks apart.
One of the most important things to take into account before investing in a small cap is the history of payments. High capitalization firms’ shares may occasionally experience some volatility owing to supply and demand. In the meantime, there is little demand for the enormous number of small cap firms listed on the exchange.
Additionally, they are probably less liquid due to their underperformance on the stock market. There are several stocks on the stock market with a valuation of less than N1 billion. These consist of:
A holding company called RT Briscoe, with a unit price of 29 kobo, is one of the small-cap companies listed on the Nigerian Exchange. It was valued N341.144 million as of Friday. (Ticker: RTBRISCOE) is a non-dividend paying company with around 2 billion outstanding shares and an extremely low net margin of less than 3%.
The corporation operates in the real estate, industrial equipment, and automotive product industries. Motor Vehicles, Industrial Equipment, Aftersales Service, and Property Development are the segments through which it works.
Long-standing company John Holt Plc (Ticker: JOHNHOLT) has a market worth of N342.453 billion on Friday, but the stock price has remained unimpressively low at 88 kobo. With 390 million outstanding shares, the company’s margin is thin, which explains why it is less liquid and relatively unpopular on the stock market.
Power and cooling equipment, as well as fire fighting vehicles, are among the products that John Holt Plc assembles, sells, leases, and services. It does business utilizing Technical Products, Leasing Services, Real Estate, Warehousing, etc.
NCR Nigeria Plc (ticker: NCR) offers technology-related goods and services that let companies communicate, engage, and do business with their clients. At market value on Friday, it was estimated to be worth N388.8 million.
With its negative margin, the corporation seems to be degrading value. A comprehensive reevaluation of its business strategy might turn around its negative earnings per share.
On the Nigerian stock market, Tripple Gee & Co. Plc (Ticker: TrippleG) is valued at N395.963 million at an 80 kobo share price, but it also has one of the lowest margins.
The company Tripple Gee & Co. Plc produces financial instruments, computer stationery, and security papers. It provides solutions for radio frequency identification smart labels, package printing, and security printing.
One of the lowest classes of listed company stock, Trans Nationwide Express shares (ticker: TRANSEXPR) were sold at 82 kobo on Friday in the stock market. The enterprise is valued at N408.483 million.
For its size, the company’s profit margin is comparatively acceptable. The company’s profitability have been under strain as it provides local and international express delivery and storage services. The bonus shares for shareholders in 2022 were authorized by the board of directors.
(Ticker: OMATEK) is a less significant stock market swan at N588.358 million, with a negative margin and 2.9 billion shares in circulation. The firm, which breaks earnings, sold its shares on Friday for 20 kobo each.
Earnings per share were negatively impacted by thin margin, and the dividend history is poor. Computers and home entertainment items are produced, distributed, sold, and serviced by the business. Additionally, it offers engineering services.
The stock market valued SCOA Nigeria Plc (Ticker: SCOA) at N597.8 billion on Friday. The firm, which is now trading at 92 kobo over 649.826 million outstanding shares, not only has a lower profit margin but also struggles with negative profits per share.
The business deals with the leasing, repair, and distribution of automobiles. The segments it uses to operate include Auto, Premium Equipment, Trading, and Construction. The auto section builds trucks, refurbishes buses, sells harvesters, leases cars, provides passenger services, and builds other commercial vehicles.
