By Boluwatife Oshadiya | August 13, 2026
Key Points
- Nigeria’s six listed agricultural stocks posted a combined profit after tax of N123.48 billion in H1 2026 — already 70.75% of their full-year 2025 earnings — as revenue surged 20% ahead of the prior full year
- The sector’s total market capitalisation reached N3.884 trillion as of August 10, 2026, reflecting an average year-to-date gain of 377%, but the headline number masks four very different investment cases
- Presco emerges as the clearest long-term buy; Okomu Oil is a quality stock priced for patience; Zichis is a short-term momentum play only; Ellah Lakes is a watch-and-wait; while FTN Cocoa and Livestock Feeds earn a firm avoid
Main Story
Nigeria’s agricultural sector just delivered one of the most compressed earnings performances in recent NGX history. The six listed agro-allied companies — Zichis, Ellah Lakes, FTN Cocoa, Livestock Feeds, Okomu Oil Palm, and Presco — completed their H1 2026 results season with a combined profit after tax of N123.48 billion, equivalent to more than seven-tenths of everything they earned across the whole of 2025.
According to Nairametrics’ analysis of the companies’ financial statements, the sector posted a combined profit after tax of N123.48 billion in H1 2026 alone — accounting for 70.75% of their entire N174.51 billion full-year 2025 profit, achieved in just six months. Revenue moved even faster, with a combined N688.88 billion in H1 2026, about 20% ahead of their full N574.09 billion full-year 2025 revenue.
The market has taken notice. The six companies added about N1.03 trillion in market capitalisation to reach a total of N3.884 trillion as of the close of trading on August 10, 2026 — equivalent to 2.42% of the broad market capitalisation of N160.42 trillion — reflecting an average year-to-date gain of 377%.
But that average disguises as much as it reveals. Behind the single sector tag are six companies with profoundly different financial profiles, valuation realities, and investment cases. Some are genuine compounders. Some are momentum plays that have already peaked. Others are value traps dressed in agricultural sector colours. One is a tentative turnaround story that hasn’t yet earned a position.
Here is the breakdown, stock by stock.
The Issue
Why This Sector Has Exploded — and Why Caution Is Still Warranted
The 2025-to-2026 rally in Nigerian agricultural stocks did not emerge from a vacuum. The rise in global edible oil prices, triggered by supply disruptions in major producing regions, boosted the revenue of palm oil processors in Nigeria. Sustained depreciation of the naira also increased investor interest in companies with strong export potential or import-substitution advantages, leading to renewed inflows into agro-industrial stocks as investors sought protection against inflation and currency volatility.
Nigeria was the world’s largest palm oil producer in the 1960s, but output — now around 1.57 million tonnes — still trails domestic demand, a deficit producers are spending billions of naira in retained earnings to close. That structural gap underpins the long-term bullish case for the sector’s best operators.
The risk, however, is that the average 377% sector gain this year has bundled very different risk profiles into one headline number. Earnings for some names have declined by 29% per year over the past five years, yet share prices have increased by 184% annually over three years — tracking significantly ahead of earnings growth. That gap between price and fundamentals is precisely the trap investors need to identify before putting money to work in H2.
What’s Being Said
The View From the Market
On Presco’s sustained earnings growth, investors have rewarded Presco’s consistent profitability, strong margins and ability to capitalise on favourable palm oil market dynamics, according to a BusinessDay analysis of the company’s five-year performance.
On the Okomu-Presco palm oil boom, Kayode Eseyin, lead consumer goods and agricultural sector research analyst at Lagos-based CardinalStone, noted: “CPO prices rose across the globe and were higher compared to last year, as there was capacity expansion by these players. Presco, in particular, made several acquisitions that supported the topline.”
On Ellah Lakes’ ongoing expansion phase, Chuka Mordi, Chief Executive Officer of Ellah Lakes, stated: “We recorded continued revenue growth, completed a major balance sheet restructuring and advanced key operating initiatives across processing and livestock. These developments provide a stronger platform for Ellah Lakes as we continue to move deeper into commercial execution.”
On Zichis’ extraordinary rise and the questions it raised, the NGX stated at the time of its regulatory investigation: “Our primary responsibility is to maintain a level playing field where market participants can trade with confidence, backed by timely and accurate information.”
On the market’s appetite for speculative small caps, a market review of April 2026 noted that Zichis’ inclusion among the top 10 gainers that month underscored investor appetite for speculative-grade small caps, even after regulatory intervention.
The Six Stocks: A Company-by-Company Verdict
1. Presco — BUY (Long-Term)
Of all six agricultural stocks, Presco makes the clearest case for a long-term investor who wants quality growth without paying a valuation premium that has already run well ahead of fundamentals.
Presco reported a profit before tax of N122.2 billion for the six months ended June 30, 2026 — an increase of 9.3% from N111.9 billion recorded in the corresponding period of 2025. The result was supported by a significant reduction in finance costs and improved finance income. The board also proposed an interim dividend of N10.00 per ordinary share.
Key H1 2026 financial highlights include revenue of N198.8 billion — broadly stable versus N198.7 billion — an EBITDA of N123.1 billion representing a margin of 61.9%, and total equity increasing 13.8% to N503.6 billion.
The company’s five-year track record speaks for itself. Presco delivered a 2,070% return over the five-year period from August 2021, with its share price surging from N74.50 to N2,070 as of August 4, 2026. Revenue climbed almost ninefold from N21.46 billion in the first half of 2021 to N198.75 billion by H1 2026, while profit after tax rose to N82.27 billion.
Yet despite that track record, Presco’s year-to-date gain of 41.74% is the most restrained in the sector — a signal that the market has not yet stampeded into the stock the way it has into some peers. The company trades at approximately 20 times earnings, but with a PEG ratio of roughly 0.34 against its five-year earnings growth rate, the price being paid for that growth remains modest relative to its history. Its price-to-book of about 4.76 times is well below the sector average of 16.15 times, and its balance sheet has close to two-thirds of assets funded by equity.
The verdict: Presco is a long-term growth buy. It is not the momentum trade of the moment — it is the stock you hold for years.
2. Okomu Oil Palm — WAIT
Okomu Oil Palm is arguably the most fundamentally sound company in the NGX agricultural sector. It has compounded profit at around 50% annually over five years alongside 52% annual revenue growth, and its return on equity of nearly 65% is the highest in the sector — driven by the strength of the underlying business rather than leverage.
Okomu Oil Palm reported a 12.03% decline in pre-tax profit for the first half of 2026 as weaker domestic and export sales, higher production costs, and increased operating expenses weighed on profitability, even as the company strengthened its balance sheet with higher cash reserves and a return to a positive working capital position. Pre-tax profit fell to N58.99 billion for the six months ended June 30, 2026, from N67.05 billion in the corresponding period of 2025. Profit after tax declined even more sharply, dropping 16.42% year-on-year to N39.73 billion.
Despite weaker earnings, Okomu Oil’s financial position improved during the period. Total assets increased 20.06% to N166.71 billion, while cash and cash equivalents rose 65.34% to N21.40 billion, strengthening the company’s liquidity position. The company also moved from a net current liability position of N2.49 billion at the end of 2025 to a net current asset position of N19.09 billion by the end of June, reflecting stronger short-term liquidity.
The quality, however, comes at a premium. Okomu trades at approximately 26.97 times earnings and 18.22 times book value — above the sector’s 16.15 times P/B average and nearly four times Presco’s multiple. At 29.50% year-to-date, its gain is also the smallest in the sector — not because the market has ignored it, but because the market had already priced in much of its quality before this year’s rally began.
The verdict: Okomu is a quality long-term growth stock, but not one to chase at current levels. A pullback offers the more rational entry point.
3. Zichis — TRADE Carefully
Zichis is the sector’s most extraordinary story of 2026, and also its most dangerous for the uninitiated.
Since its IPO price of N1.99 at listing in January 2026, the stock surged over 800% in a matter of weeks, peaking at N17.36 on February 20, 2026. The rapid price rise led to regulatory concerns, prompting the NGX to suspend trading in the shares in February pending an investigation. The NGX subsequently lifted the suspension following a month-long investigation by NGX Regulation Limited (NGX RegCo) into the extraordinary price movement.
There is some fundamental story beneath the hype. Zichis delivered strong financial performance for the three months ended March 31, 2026, driven by significant revenue expansion across agricultural segments including poultry, eggs, palm oil, and feed production. Revenue surged 256% year-on-year to N420 million, reflecting increased production capacity and stronger demand across core agro-allied products.
But the valuation stretches credulity for any long-term investor. The stock trades at approximately 36 times earnings — nearly three times the sector average of 12.89 times — yet it only listed in January 2026 and therefore carries no meaningful public-market track record. Analysts have flagged that among the NGX’s biggest small-cap movers in 2026, the earnings rarely supported the price action, with the fundamentals in most cases telling a very different story from the rally.
The verdict: Zichis may appeal to short-term momentum traders, but the trade has already cooled from its peak. Treat it as a momentum play with a defined exit, not a conviction bet.
4. Ellah Lakes — HOLD/WATCH (Long-Term); AVOID (Short-Term)
Ellah Lakes is the only agricultural stock in the red this year — down 35.07% against a sector average gain of around 191% — yet it is also the most structurally interesting for a patient investor who can tolerate waiting for a story to play out.
Ellah Lakes reported an operating loss of N782.63 million for the six months ended June 30, 2026 — an improvement from the operating loss of N3.84 billion reported for the 17-month audited period ended December 31, 2025. Revenue increased significantly to N533.86 million as the company scaled commercial operations across its agribusiness platform. Management attributed revenue growth primarily to oil palm sales, supported by contributions from palm kernel-related sales, livestock operations and sludge sales.
The balance sheet is, by far, the most conservative in the sector — with roughly 98% of assets funded by shareholders’ equity rather than debt. Its price-to-book ratio of 2.15 times is the lowest in the sector, well below the 16.15 times average. Loss per share has narrowed from approximately N0.71 in 2024 to N0.28 in H1 2026, a trajectory that, if sustained, eventually points toward profitability.
But the keyword remains if. The turnaround has not yet fully translated into self-sustaining revenues and earnings. Without profitable operations, a clean balance sheet and a low P/B do not alone make the stock undervalued.
The verdict: Long-term investors should watch Ellah Lakes closely but hold off on a position until profitability is demonstrated. Short-term investors should avoid it entirely — there is no price momentum here to trade.
5. FTN Cocoa — AVOID
FTN Cocoa’s price-to-book ratio of 40.31 times is the highest in the sector — a striking figure for a company whose shareholders’ equity represents only about 3.3% of total assets. In other words, the balance sheet is funded overwhelmingly by liabilities, not by genuine equity value.
FTN Cocoa’s Q1 2026 results revealed that total liabilities of N22.9 billion far exceed total equity of N1.1 billion, with the company operating with a high debt-to-equity ratio. While a foreign exchange gain contributed to Q1 profitability, future currency movements could lead to significant losses.
The earnings trend over five years has been declining, with the company recording losses in multiple periods. Any profits that have appeared have been driven significantly by foreign exchange gains — not by underlying operational strength. There is no dividend history to cushion investors who get the call wrong.
The verdict: FTN Cocoa does not earn a place in either a long-term or short-term portfolio. The combination of an almost entirely liability-funded balance sheet, inconsistent earnings, and a 40-times price-to-book ratio makes it a stock to sidestep regardless of price momentum.
6. Livestock Feeds — AVOID
Livestock Feeds carries similar concerns to FTN Cocoa, though in less extreme form. Shareholders’ equity represents only about 10% of total assets, the company has recorded losses in three of the past five years, and its return on equity is currently negative. Like FTN Cocoa, there is no dividend track record to offer downside protection.
The risk-reward calculus simply does not work — either for someone building a long-term portfolio on earnings fundamentals, or for a short-term trader looking for momentum with some fundamental anchoring underneath it.
The verdict: Livestock Feeds, like FTN Cocoa, belongs outside the portfolio. The structural weaknesses are too significant to overlook, regardless of how the share price moves.
What’s Next
Three items for investors to track into H2 2026:
- Presco’s full-year 2026 earnings: With H1 pre-tax profit already at N122.2 billion and an interim dividend of N10.00 per share declared, the company’s H2 results — expected in early 2027 — will determine whether the five-year compounding trajectory holds.
- Okomu Oil Palm’s price correction: Given that its H1 2026 profit declined 16.42% year-on-year, a pullback from its current elevated valuation would provide the cleaner entry point for long-term investors.
- Ellah Lakes’ profitability timeline: The company’s CEO has flagged continued progress in its scale-up phase. The next quarterly result will be the earliest signal of whether the revenue growth is beginning to outpace operating losses consistently enough to call a turning point.
Bottom Line
The Bottom Line: Six companies share the NGX agricultural sector tag, but they represent four completely different investment realities — and the 377% average year-to-date sector gain papers over that distinction in a way that will hurt undiscerning investors in H2. Presco is the quality compounder still trading at a rational price; Okomu is worth every naira it will cost after a pullback; Zichis is a trading vehicle, not an investment; Ellah Lakes is a watch, not a buy; and FTN Cocoa and Livestock Feeds are the sector’s value traps — attractive in headline numbers, hollow underneath. In a market where momentum has run far ahead of fundamentals for several names, the most important skill in H2 is not identifying the winners — it is identifying which stocks to avoid.
