How much should you pay for Julius Berger?

Julius Berger Nigeria Plc  constructs infrastructures and buildings, and provides services such as facility management. The company has acquired good reputation for its success in the construction of infrastructure in Nigeria. 

Buy 

JBERGER benefits from the technical competence of Julius Berger International GmbH(Germany)  to build projects to the specifications of its clients. Being a foremost government contractor, JBERGER  stands to benefit from the huge infrastructural gap in the country. JBERGER's experience grants it the ability to charge a premium on its construction projects.

Currently, it trades at 2.4 times book value. JBERGER consistently rewards its shareholders. We expect a total return of 48% in the next three years.

A share of JBERGER is worth between NGN50.8 and NGN62.4 by our analysis. 

Recommendation: Buy 

Vital Statistics

Ticker:                                JBERGER                   

Nature of Business:           Infrastructure/Heavy Construction

Location (Headquarters): Nigeria                                                

Recent Price:                      NGN34.30                        

52-Week High/Low:           NGN48.39/32.14   

Estimated Fair Value:        NGN50.8-NGN62.4             

3-Year Expected Return:   48%         

Consider Buy:                     Below NGN50                       

Business Risk:                     Medium                  

Financial Risk:                    Average                    

Economic Moat:                  Strong                

Corporate Governance:     Average