Centum is one of the big investment companies in East Africa with diverse investments in healthcare, real estate, financial services, fast moving consumer goods, agribusiness, education, and marketable securities.
Centum’s 2019 half year performance saw a 27.5 percent rise in after tax profit to reach KSh2.1 billion (1H2018: KES 1.6 billion). The good results were supported by high investment income as well as KSh1.2 billion gain from the sale of GenAfrica Asset Managers.
According to FIB analysts, Centum’s Net Asset Value as at the end of the first half of 2019 was KSh73.6 per share representing a 57.7 per cent discount to the share’s closing price of KSh32.2 as at 1st March 2019. Centum’s valuations are quite conservative. In the last five years, the investment firm has had eight exits whereby it realized higher gains than the recorded carrying value.
Faida Investment Bank analysts recommend a long term buy for the stock. Their recommendation is backed by the company’s impressive past performance and the share’s discounted price. FIB analysts expect the income earned from exits to be used in settling outstanding debt and investing in income generating ventures. This move will improve net cash flow for the firm and lead to higher dividend payouts
