Company Overview
Custodian Investment Plc is one of Nigeria’s leading diversified financial services holding companies. Established in 1991 as an insurance company, and was listed on the Nigerian Stock Exchange (NSE), now Nigerian Exchange Limited (NGX). Today, the company has evolved into a financial conglomerate with operations spanning insurance, pensions, trusteeship, asset management, property investment, and hospitality. Its strategy focuses on generating stable recurring earnings through multiple financial service subsidiaries while leveraging investment income and long-term capital appreciation.
Current price: N65.90
Rating: Buy
Price projection: N117.48 (78.27%) and N148.96 (126.04%)
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, the stock is within Wave IV of the grand cycle. In other words, Custodian is experiencing a deep correction. Thus, investors should expect a brief bullish rally (Wave B) before another final correction.
Daily chart: Investment opportunity
Plotting the Fibonacci retracement from wave 1 to 5 of the grand Wave III cycle, the investment opportunities lie within the 0.5 and 0.618 Fibonacci levels. The prices to watch include N65.9 and N55.93 as potential support levels and N77 and N90 as resistance levels. In line with this sentiment, the price projection for Custodian includes N117.48 (78.27%) and N148.96 (126.04%)
Indicator analysis
Weekly chart: Market overview
Custodian commenced this week with a strong bullish sentiment, indicating renewed investor interest. In line with this performance, the stock’s liquidity and momentum regained their strength, tilting upward. Since MACD’s bearish momentum remains solid, investors should prepare to buy into value.
Daily chart: investment opportunity
On the daily chart, the indicators signal a recovering market. While volume remains low, the stock’s liquidity and momentum are gradually increasing. Also, MACD’s bearish momentum indicates divergence. Overall, these performances offer favourable investment conditions.
Fundamental analysis
Full-year financial report for 2025
Key insight: The financial rating for Custodian Investment is 79%, meaning it’s suitable for long-term trading and medium-term investment
Key Highlights
Revenue increased by 55.51%, indicating strong top-line growth.
Profit After Tax rose 22.36%, reflecting improved profitability, although at a slower pace than revenue.
Total Assets surged 154.38%, suggesting significant expansion of the company’s balance sheet.
Total Liabilities increased by 205.67%, outpacing asset growth, indicating that a substantial portion of the expansion was financed through liabilities.
Net Operating Cash Flow declined by 50.16%, meaning the company generated considerably less cash from its core operations than in the previous year. This is a metric worth monitoring despite the strong earnings growth.
SWOT analysis
