OKOMUOIL

Okomu Oil Palm Plc is a high-quality agricultural compounder — Q1-2026 annualised ROE of ~88% and a PBT margin of ~58% on ₦59bn quarterly revenue confirm exceptional capital efficiency and pricing power — but at ₦1,418 the stock trades at ~21.3x trailing EPS and ~18.7x book, roughly 89% above the model's blended fair-value base of ₦748.79 and 35% above even the bull-case estimate of ₦1,046. The committee score is 'cautious' (net score -1), with Value and Valuation-Gap factors both firmly negative, and quality alone cannot bridge a ~47% implied downside to base fair value. At current prices the risk/reward is materially unfavourable for new capital deployment.

Verdict published 2026-08-18 · fundamentals through FY2025 · reviewed as the data changes