Livestock Feeds Plc is one of Nigeria’s established animal nutrition and feed-milling companies. It was established in 1963 and has over 60 years of operating history in the Nigerian animal feed industry. It is principally engaged in the manufacturing and marketing of animal feeds and concentrates, serving different segments of the livestock value chain.
Current price: N7.20
Rating: Buy
Price projection: N10.50 and N14
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
Livestock is in wave C within Wave IV of the grand cycle on the weekly chart. This reading suggests that this bearish performance should be the final before a strong bullish rally. Due to the deep corrective market, volume remained low, the market’s strength declined, and MACD’s bearish momentum strengthened. However, liquidity regained momentum, signaling renewed trader interest.
Daily chart: Trading opportunity
On the daily chart, Livestock hasn’t completed its corrective phase. Thus, trades should expect support within the 1.0 Fibbonacci level at N6.50. The indicators on daily chart suggest that the stock is gradually recovering. The bullish volume remained consistent and liquidity sustained its upward momentum. Given this sentiment, the price projections for this stock include N10.50 and N14.
Fundamental Analysis Overview
Current Position: Recovery Potential, but with High Risk
Livestock Feeds presents an interesting turnaround and recovery story.
The company recorded a very strong FY 2024, with revenue exceeding ₦41 billion and profit after tax of approximately ₦1.93 billion. However, FY 2025 was significantly weaker, with declining revenue, sharply reduced margins and a substantial loss.
The encouraging development is the Q1 2026 earnings recovery.
Despite a decline in revenue, the company recorded:
Higher gross profit
Higher operating profit
A major reduction in finance costs
More than ₦856 million in profit before tax
More than ₦731 million in profit after tax
This indicates that the company may be improving the efficiency of its operations and reducing the financial burden that damaged its FY 2025 performance.
SWOT Analysis
