IKEJAHOTEL

Ikeja Hotel Plc has executed a compelling operational turnaround from three consecutive loss-making years (2020–2022) to sustained profitability, with FY2025 EPS of ₦6.45 implying a P/E of just 6.98x at the current price of ₦45 — a meaningful discount to the SERVICES sector median of 10.52x. A 29.4% ROE (FY2025), a PBT margin of approximately 42% on Q3-2026 nine-month revenues of ₦19.4bn, and a clean balance sheet with equity of ₦47.5bn against total assets of ₦80.9bn collectively point to a business generating high-quality, durable returns. At current levels, the stock trades at a modest 8.7% discount to our base fair value of ₦48.89, with a bull-case target of ₦62.96 representing 40% upside — making this an attractively priced quality compounder rather than a deep-value distressed bet.

Verdict published 2026-10-27 · fundamentals through Q3-2026 · reviewed as the data changes