As of the close of trading on Tuesday, SCOA Nigeria Plc had climbed roughly 365.49 per cent year-to-date, while R.T. Briscoe (Nigeria) Plc advanced 260 per cent. Union Dicon Salt Plc posted a 244.20 per cent rise, and Berger Paints Nigeria Plc gained 207.50 per cent.
These five stocks listed on the Nigerian Exchange Limited (NGX) have each delivered returns of more than 200 per cent so far this year, underscoring strong investor interest in low-priced equities and a broader revival of momentum in the small-cap segment.
Fortis Global Insurance Plc, previously known as Standard Alliance Insurance Plc, saw an even sharper increase from its January reference price. That performance, however, needs qualification: the company completed a four-for-one share reconstruction in July, so a straightforward comparison with the pre-reconstruction price is less reliable.
Data from the NGX showed that SCOA advanced from N7.10 at the beginning of the year to N33.05 as of August 11, representing a 365.49 per cent appreciation.
Union Dicon Salt rose from N6.90 to N23.75, translating to a 244.20 per cent gain, while R.T. Briscoe climbed from N3.50 to N12.60, giving investors a 260 per cent return over the period.
Berger Paints also recorded a substantial rally, moving from N48 at the start of the year to N147.60 by August 11, representing a 207.50 per cent increase.
Fortis Global Insurance, meanwhile, moved from 20 kobo at the beginning of the year to N2.60, representing a 1,200 per cent increase based on the stated starting price. The effect of its four-for-one share reconstruction, however, means the percentage movement should be interpreted with caution.
The surge in these counters comes as the broader Nigerian equities market continues to post strong returns. The NGX All-Share Index has gained more than 57 per cent this year, encouraging investors to look beyond the market's larger companies and seek opportunities among small and mid-cap stocks.
Market operators attributed the sharp movements in some of the low-priced counters to increased retail participation, relatively thin free floats and momentum-driven trading.
Where only a limited number of shares are available for public trading, relatively modest buying pressure can trigger significant price movements. This dynamic has helped propel some smaller companies to the top of the market's gainers' table.
Improved investor sentiment has also encouraged a rotation towards companies viewed as undervalued or capable of turning around their financial performance. Expectations of stronger earnings and dividend payments have provided additional support for selected counters.
Strong earnings support some rallies
For some of the stocks, the sharp price appreciation has been accompanied by improvements in corporate performance.
Berger Paints, for instance, attracted renewed buying interest following its strong 2025 financial results and expectations of dividend payments. The company increased revenue by about 20 per cent to N12.99 billion in 2025, while profit after tax rose significantly to N1.57 billion from N610.9 million in the previous year.
Its total dividend for the year stood at N1.65 per share, further strengthening investor interest in the counter.
SCOA Nigeria also recorded a significant improvement in its financial performance. In its unaudited 2025 results, the company reported a pre-tax profit of N723.8 million, compared with N27.1 million in the previous year. Turnover increased by 40.94 per cent to N8.3 billion from N5.9 billion in 2024.
R.T. Briscoe similarly posted stronger financial numbers. Revenue for the year ended December 31, 2025, rose by 41.1 per cent to about N40.41 billion, compared with N28.63 billion in 2024.
The company's profit after tax also increased sharply to N2.89 billion from about N809 million in the preceding year, indicating a substantial turnaround in profitability.
The positive trend continued into 2026. For the first quarter, R.T. Briscoe reported profit after tax of N718.717 million, compared with N197.25 million in Q1 2025, representing a 264 per cent year-on-year increase.
Revenue also grew by 84.7 per cent to N15.325 billion during the quarter, providing further support for the company's improved market performance.
Investors urged to look beyond price gains
Despite the impressive returns recorded by these stocks, market operators have cautioned investors against relying solely on price momentum when making investment decisions.
They advised investors to examine key fundamentals, including earnings growth, revenue performance, balance-sheet strength, cash flows and valuation, before taking new positions.
According to the operators, a sharp increase in a stock's market price does not automatically mean that the company remains undervalued. Investors need to determine whether the underlying financial performance is strong enough to justify the current valuation.
They also warned that momentum can reverse quickly, particularly where a stock has experienced a rapid price increase without a corresponding improvement in earnings.
As a result, investors are expected to pay close attention to whether the factors supporting the current rally are sustainable. If earnings growth fails to keep pace with rising share prices, some of the heavily appreciated stocks could become vulnerable to profit-taking.
For now, however, the performance of SCOA, R.T. Briscoe, Union Dicon Salt, Berger Paints and Fortis Global Insurance underscores the renewed interest in smaller NGX-listed companies, as investors continue to search for returns in a market that has delivered strong gains across the board.