NAHCO records 171% annual return, surpasses stock market benchmark

The Nigerian Aviation Handling Company (NAHCO) Plc has emerged on the topmost chart of best-performing stock at the Nigerian stock market with more than six times higher than average annual return at the market.

The group recorded a cumulative capital gain of 2,048 per cent over a 12-year period, as against 287.23 per cent recorded by the benchmark index for the market.

NAHCO recorded an average annual capital gain of 170.64 per cent over a 12-year period, compared with 23.94 per cent recorded by the overall benchmark index for the stock market.

While the overall, double-digit, positive return by the market underlines the value-retention of quoted equities over the years, NAHCO’s performance marks it out as inflation-hedging stock for long-term investments.

This implies that an average investor in NAHCO still has an annual return of more than 100 per cent over the 12-year period, when adjusted for inflation rate and cost of capital or interest rate.

Trading analysis showed that on a straight line, NAHCO’s share price appreciated by 1,527 per cent over the 12-year period, representing average annual capital gain of 127.2 per cent.

When two bonus issues undertaken during the period were considered, total value of the shareholdings increased by 2,048 per cent, indicating average annual gain of 170.64 per cent.

The analysis, covering August 20, 2013 and August 20, 2025, showed that NAHCO’s share price rose from N6.30 to N102.50 per share, a cumulative increase of 1,527 per cent or average annual growth of 127.2 per cent.

An investor who staked N1 million on NAHCO on August 20, 2013 closed the period ended August 20, 2025 with total share value of N21.5 million, representing cumulative return of 2,048 per cent over the 12-year period and average annual return of 170.64 per cent.

The total share value of N21.5 million included two bonus issues undertaken by the company during the period, but excluded cash dividends paid by the company noted for consistent cash dividend payment.

With N1 million, total shareholdings stood at 158,730 shares at the beginning of the prototype portfolio and closed the period with about 209,524 shares.

NAHCO had declared bonus shares of one share for every 10 shares held in 2015 and followed this with a bonus of one share for every five shares held in 2022.

Bonus issue or scrip dividend represents shares that are distributed free to shareholders on the proportion of their shareholdings as at the qualification date. Such bonus shares are paid for from the reserves of the company, typically accumulated retained earnings. As such, bonus issuance illustrates earnings capacity and profitability of a company.

NAHCO, which was privatized in 2005, currently has more than 72,000 shareholders.

Managing Director, HighCap Securities, Mr. David Adonri said the performance of NAHCO underscored its strong fundamentals.

Adonri explained that the capital market is information driven as all the information available about an issuer or a company as well as macroeconomic fundamentals and sociopolitical environment now and into the foreseeable future are priced into the value of securities.

“The combination of all forces above shape the fundamentals of a company and dictate the direction of price movement of the stock through the market mechanism of supply and demand.

“A stock like NAHCO has appreciated heavily over the years because of its strong fundamentals, high dividend yield and consistent dividends payout. Over time, there is correlation between a company’s fundamentals and growth in its market value,” Adonri said.

Managing Director, GTI Capital Limited, Mr Kehinde Hassan, described the linkage between fundamentals and share pricing trend like the relationship between a building’s foundation and the strength and height of the building.

Hassan explained that while the stock market may be influenced temporarily by emotions, speculations and immediate macroeconomic development, solid fundamentals remain the ultimate support base that ensures that a company retains value over the years.

The NAHCO Group is a well-diversified conglomerate with interests in aviation ground handling, airport management, aviation training, free trade zone, commodities export, and energy solutions. In addition to its main ground handling business and cargo handling business, other subsidiaries included Mainland Cargo Options Limited, Nahco Free Trade Zone Limited, NAHCO Power Solutions Limited, NAHCO Management Services, NAHCO Travels & Hospitality Limited, NAHCO Aviation Academy and NAHCO Commodities Limited.

Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Fadeni, addressing shareholders at their annual general meeting in May, 2025, said the group has the capacity to attain the N300 billion revenue target.

Fadeni said the group plans to further diversify its businesses as part of strategies to drive the group’s revenue above N300 billion within the next five years.

He stated further that a five-year growth strategy being implemented by the company would enhance existing businesses and diversify into other emerging opportunities.