Lafarge Africa Plc is the oldest and one of Nigeria’s largest integrated building materials companies and a leading producer of cement, aggregates, ready-mix concrete, mortar, and waste management solutions. The company is listed on the Nigerian Exchange (NGX) Premium Board and became a member of China’s Huaxin Cement Group following the acquisition of Holcim’s controlling stake in the company.
Current price: N335
Rating: Buy
Price projection: N380.56 (13.59%) and N437.29 (30.52%)
Technical Analysis
In this report, we shall use the following tools and analysis methods:
Elliott’s wave theory to understand the overall market sentiment
Fibonacci tools to determine support and resistance levels
The Relative Strength Index and volume to evaluate the market’s strength
The Money Flow Index to determine the market liquidity
Moving average and MACD to understand the nature of the trend
Top-down analysis to know the best investment position
Elliott wave analysis
Weekly chart: Market overview
On the weekly chart, Lafarge is within Wave III of the grand cycle, meaning it has potential for a continuous upward rally. In the intermediate cycle, the stock remains with its corrective phase despite the strong bullish sentiment. This corrective phase offers investment opportunities for stock marketers.
Daily chart: Investment opportunity
On the daily chart, the index completed a simple ABC flat correction after testing the 0.5 Fibonacci level. The completion led to the bullish rally, signaling a recovering market. Investors and traders should watch the following support levels: N315.25 and N293.37, with prices projected at N380.56 (13.59%) and N437.29 (30.52%).
Indicator analysis
Weekly chart: Market overview
Although volume remains low and MACD’s bearish momentum is strong, the market’s liquidity and momentum offer favorable investment opportunities for traders and investors.
Daily chart: Investment opportunity
Profit-taking prevails on the daily chart, yet liquidity and momentum remain solid. This performance suggests an opportunity for discount trading for a long-term return on investment.
Fundamental Analysis
Full-year financial report for 2025
Key insight: The financial rating for Lafarge is 100%, making it sustainable for long-term investment
Key Financial Highlights
Revenue surged 53.0% to ₦1.07 trillion, marking the company’s first-ever ₦1 trillion revenue year and indicating very strong cement demand and successful price increases.
Profit after tax jumped 172.7% to ₦273.1 billion, showing a much faster profit growth than revenue growth, which suggests improved operating efficiency, better cost control, and stronger margins.
Operating cash flow increased 36.7% to ₦292.6 billion, confirming that earnings were supported by real cash generation rather than accounting gains.
Total assets rose 22.0% to ₦1.21 trillion, reflecting continued investment in production capacity, working capital, and infrastructure.
Total liabilities increased only 5.8% while profit rose 172.7%, indicating balance-sheet growth was funded more by earnings than by new debt.
SWOT analysis
