BUA Meals Plc continues to cement its place as one of the vital defensive and cash-generating shares on the Nigerian Alternate (NGX).
Since its itemizing in 2022, the meals big has accrued about N2.7 trillion in income, rising at a compounded annual charge of 54%.
Revenue after tax has compounded at 43%, delivering N469.44 billion over three years, whereas free money circulate has reached N394 billion.
The sturdy efficiency has continued to energy the corporate’s bumper dividends. On the Annual Basic Assembly (AGM) held on Thursday, September 11, 2025, shareholders accredited a N13 per share dividend for the 2024 monetary 12 months; a 136% bounce from the N5.50 paid in 2023.
With 18 billion shares excellent, the payout quantities to about N234 billion, translating into an 88% payout ratio.
The largest winner, unsurprisingly, is Chairman Alhaji Abdul Samad Rabiu CFR, CON, who controls 92.64% of the corporate (16.67 billion shares, each straight and not directly).
His take-home dividend is estimated at N216.75 billion, leaving nearly N11 billion for the free float of 851 million shares (4.73% of the corporate).
Monetary momentum continues
- In H1 2025, BUA Meals generated N913 billion in income (60% of FY 2024 income) and N125 billion in PAT, up 137% YoY.
- The steadiness sheet strengthened as whole property rose 22% to N1.3 trillion, whereas leverage moderated to 1.93x from 2.55x in 2024.
- Margins improved, displaying that progress is not only volume-driven but in addition efficiency-backed.
The catch: not for everybody
Regardless of its fundamentals, BUA Meals is tightly held. With Rabiu proudly owning over 92% of the corporate, the free float is proscribed, leading to low liquidity and little volatility.
Between August 21 and September 12, 2025, the inventory moved solely 0.34% (N588 to N590) and has remained flat since.
Over the previous three months, buying and selling quantity was 16.7 million shares in 17,705 offers, averaging simply 265,000 shares per session, extraordinarily low relative to its market capitalization of N10.6 trillion, now probably the most worthwhile firm on NGX.
The inventory additionally carries a low beta of 0.58, confirming that it strikes far lower than the broader market.
For retail buyers, this presents a dilemma. Restricted liquidity means problem coming into or exiting positions in significant quantity, and the absence of worth swings reduces the chance for speculative good points.
In essence, retail buyers could discover themselves crowded out and will not make fast returns.
Verdict: Purchase for establishments, Maintain for retail
- Institutional buyers will proceed to seek out BUA Meals enticing, given its defensive enterprise mannequin, sturdy money flows, and constant dividend coverage.
- Retail buyers already holding ought to maintain their stake for the dividend earnings and stability, however new entrants could battle to seek out sufficient liquidity to justify a purchase at present ranges.
In brief, BUA Meals is a Purchase for dividend-seeking establishments and a Maintain for retail buyers.
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