Five stocks on the Nigerian Exchange Limited (NGX) have recorded gains of more than 200 per cent so far this year, as strong interest in low-priced stocks continues to drive a rally in the small-cap segment.

At the close of trading on Tuesday, SCOA Nigeria Plc recorded a year-to-date gain of about 365.49 per cent, while Union Dicon Salt Plc gained 244.2 per cent. R.T. Briscoe (Nigeria) Plc rose by 260 per cent, while Berger Paints Nigeria Plc gained 207.50 per cent.

Fortis Global Insurance Plc, formerly Standard Alliance Insurance Plc, recorded the largest increase relative to its January baseline price, although its performance warrants caution, as the company completed a four-for-one share reconstruction in July.

Data from the Nigerian Exchange Limited (NGX) showed that SCOA rose from N7.10 kobo at the beginning of the year to N33.05 kobo on August 11, translating to a 365.49 per cent gain. Union Dicon Salt moved from N6.90 to N23.75, representing a 244.20 per cent increase, while R.T. Briscoe climbed from N3.50 to N12.60, giving investors a 260 per cent return.

Berger Paints advanced from N48 to N147.60 kobo, representing a 207.5 per cent appreciation. Fortis Global Insurance moved from 20 kobo at the beginning of the year to N2.60 kobo. This represents a 1,200 per cent increase.

The NGX all-share index has recorded a strong positive return of over 57 per cent this year, while investors have increasingly moved into small and mid-cap stocks in search of returns above inflation.

Operators linked the rally in the low-priced stocks mainly to aggressive retail participation, thin free floats and momentum trading. The combination means that relatively small buying pressure can produce large movements in stocks with limited shares available for public trading.

The market-wide improvement in investor sentiment has also encouraged rotation into turnaround and undervalued companies, while expectations of stronger corporate earnings and dividends have supported buying interest in some stocks.

Berger Paints attracted renewed buying interest following strong 2025 financial results and expectations of dividend payments. The company increased its revenue by about 20 per cent to N12.99 billion in 2025, while profit after tax rose to N1.57 billion from N610.9 million. Its total dividend for the year was N1.65 per share.

SCOA Nigeria reported a pre-tax profit of N723.8 million in its unaudited results for the 2025 financial year, compared with N27.1 million in the previous year. Its full-year turnover rose by 40.94 per cent to N8.3 billion from N5.9 billion in 2024.

Also, R.T. Briscoe reported revenue of about N40.41 billion for the year ended December 31, 2025, representing a 41.1 per cent increase from N28.63 billion in 2024.

The company’s profit after tax stood at N2.89 billion, representing a strong turnaround from about N809 million in 2024.

For Q1 2026, the firm reported PAT of N718.717 million, compared with N197.25 million in Q1 2025, representing a 264 per cent year-on-year increase, while revenue also rose by 84.7 per cent to N15.325 billion during the same period.

However, while the gains have created significant wealth for early investors, the operators said investors should look beyond price momentum and examine earnings, revenue growth, balance sheet strength and valuation before taking new positions.

They cautioned that strong price appreciation does not necessarily mean that a stock is fundamentally undervalued, stressing the need for investors to determine whether the companies’ earnings and other financial indicators justify their current market prices.

According to them, investors should also consider the sustainability of the factors driving the rally, as stocks that have recorded sharp gains may face profit-taking if earnings growth fails to keep pace with rising valuations.