PRESCO

Presco Plc is a high-quality Nigerian palm oil compounder with best-in-class margins (41.4% net margin, 61.9% EBITDA margin in H1 2026) and a healthy ROE of 24-31%, but the stock at ₦2,045 trades at a meaningful premium — roughly 19.7x trailing P/E versus a blended fair value of ₦1,789 and a bear case of ₦1,001 — leaving limited margin of safety at current levels. H1 2026 results confirm continued operational momentum (PBT +9.3% YoY to ₦122.2bn, liabilities down 42.5%), yet the committee score flags negative momentum, negative income (thin dividend yield at 0.97%), and a negative valuation gap, producing an overall 'cautious' read that we find credible. The name merits a hold rather than accumulate: quality is unambiguous, but the entry price requires near-perfection to generate acceptable forward returns.

Verdict published 2026-08-18 · fundamentals through Q2-2026 · reviewed as the data changes