Dipo Olowookere
By Dipo Olowookere
Foremost economist, Mr Bismarck Rewane, seems to have endorsed the Dangote Cement Plc after he spoke glowingly of the huge prospects the company has in terms of boosting the wealth of investors.
The CEO of Financial Derivatives Company, while speaking on Wednesday, September 23, 2020, at the Facts Behind the Figures and Sustainability Report of the cement firm, said the company has good investment opportunities for those in search of value for their money.
According to him, Dangote Cement, being the largest company on the Nigerian Stock Exchange (NSE), “provides ease in execution of investment decision.”
Mr Rewane noted that the cement maker’s equity value “has shown the most resilience compared to peers,” saying it provides “indirect exposure to Dangote Cement Plc’s operating countries.”
The respected analyst said further that the Dangote Cement “delivers a source of income through a stable and strong dividend to investors (dividend yield of 11.8 per cent); and has attractive upside potentials with a target price of N173 at a 28 per cent premium to the current price.”
Business Post reports that the share price of Dangote Cement, owned by Mr Aliko Dangote, the richest man in Africa, closed N3.10 or 2.28 per cent higher last Friday to N139 per unit.
At the Wednesday’s event monitored by Business Post, Mr Rewane also said Dangote Cement, at the moment, controls 59 per cent of the cement market share in Nigeria by volume, while its two rivals, Lafarge Africa and BUA Cement, control 21 per cent and 20 per cent respectively.
Just over three years ago, Dangote Cement controlled about 65 per cent of the market, but the likes of Lafarge Africa and BUA Cement especially, have been giving the leader a run for its money.
In his presentation, the CEO of Dangote Cement, Mr Michel Puchercos, who ported from Lafarge Africa Plc in February 2020, stated that “as Africa’s largest cement manufacturer, the future certainly looks bright.”
“We have established a strong platform for future growth and consolidation across Africa, and we are on track to be a global leader in cement production recognised for high-quality products and services, and the way we conduct our business,” he added.
On his part, the acting Chief Financial Officer of Dangote Cement, Mr Guillaume Moyen, assured that the company will continue to grow and deliver value to shareholders, while the firm’s Head of Sustainability, Mrs Eunice Sampson, said efforts will be made to continue to cut down the cost of production by sustaining the present strategy, which she said has worked well.
Mr Oscar Onyema, the CEO of the exchange, who joined the discussions, commended the board and management of Dangote Cement for their leadership in integrating sustainability into the core of their business operations.
“At the exchange, we will continue to highlight the importance of sustainable business practices in delivering value to our listed companies, the investing public and to support African economic growth,” he said.
At the close of the event, Mr Puchercos was honoured with a digital closing gong ceremony to signal the end of trading activities on the exchange for the day.
