Chams Plc: A Promising Buy on the Nigerian Exchange for Growth Seekers

Chams Plc stands out as an attractive buy candidate on the Nigerian Exchange (NGX) in 2025, especially for investors looking to tap into Nigeria's growing fintech and identity management sectors. Recently, Chams’ stock showed strong momentum, registering a remarkable 47.2% year-to-date increase with a price range around NGN 2.90 to NGN 3.22. Its 13th place among the most traded stocks on NGX highlights solid liquidity, making it easier for investors to enter or exit positions.

On the fundamentals front, Chams is known as a leading provider of digital identity management and payment solutions in Nigeria. They have an established client base that includes key government agencies, which lends business stability. The company has a market cap of roughly NGN 13.8 billion and posts a P/E ratio in the 30-37 range—indicating a moderately priced growth stock. With revenues approximately NGN 15.24 billion and net income nearing NGN 380 million, Chams is profitable. The firm chooses to reinvest earnings rather than pay dividends, signaling a focus on growth over immediate shareholder returns.

From a technical perspective, Chams shows a mostly neutral to bullish trend with moving averages suggesting potential upward momentum. The stock’s beta is around -0.03, which is lower than the market average, appealing to investors seeking less volatile options. However, the stock can experience sharp price movements, like the recent single-day 9.9% drop, which underlines the need for careful timing.

In conclusion, Chams combines solid fundamentals, strong liquidity, and a niche fintech position to offer promising long-term growth potential. While it lacks dividend payouts and carries some short-term volatility, it remains a compelling buy for investors prepared to hold for future gains with an eye on market timing and technical signals. A smart pick for growth-oriented portfolios on the NGX.