STOCKSMASTER

3 NSE picks for Feb-March 2026: 1. BAT - Likely final dividend Ksh 45-50 in a fortnight 2. NCBA - 9400 NCBA shares at ksh 105 + Final Dividends 2025 & H1 Interim 2026 dividends 3. KPLC - Undervalued especially when compared to KPC IPO

@kahome_steve NSE Market is very dividend sensitive with shares tracking closely the dividend yield.......Both KCB and Equity are headed to the lower 60s based on this dividend sensitivity

The NSE closed in the red today, with all major indices posting declines, reflecting heightened selling pressure. The dip, however, presents fresh buying opportunities in stocks such as KCB, Equity Group, and KPLC. KCB fell to KSh 72.50, Equity Group closed at KSh 73.25, while KPLC dropped to KSh 16.95. The NASI ended the session at a Year to date gain of 9.14%

The three stocks (BAT, NCBA and KPLC) still continue to be best value for money...BAT has moved from Ksh 497 (when I posted on Feb 13th) to Ksh 577 today, a 16% gain in a month for those that jumped in. Happy Hunting

3 NSE picks for Feb-March 2026: 1. BAT - Likely final dividend Ksh 45-50 in a fortnight 2. NCBA - 9400 NCBA shares at ksh 105 + Final Dividends 2025 & H1 Interim 2026 dividends 3. KPLC - Undervalued especially when compared to KPC IPO

@WaruhiuFranklin @NSE_Investors @mytradesignals @wiseshilling @watesh @WillisOwiti @kippyt__ The KCB final dividend is a short term gain of only 3.8%.....An alternative is BAT that can lock in 10.5% in final dividends

KCB opened trading at 79.50 today. Why isn’t the market showing more enthusiasm for the stock despite the strong FY2025 results + increased dividend payout? @NSE_Investors @mytradesignals @wiseshilling @watesh @WillisOwiti @kippyt__

Two things that will impact KPC price post listing: 1. Iran War - KPC will most likely have less product to distribute impacting on its revenue short term. 2. The snub by all investors except GoU and NSSF A post listing price of below Ksh 6 looks more likely

KPC IPO...seems Retail Investors, foreign investors,OMCs and even KPC employees all avoided subscribing......Institutional Investors most likely NSSF and Uganda Govt did the heavy lifting..

Target of Ksh 540 reached as expected but a Ksh 60 dividend means a new higher exit target of Ksh 600......

Best 3 picks for Mid Feb - End of March: 1. BAT Trading at Ksh 495-500 range, with 2026 results in 2 weeks. Expecting an earnings per share of about Ksh 55-60 and final dividend of Ksh 45-50. That's a potential 10% dividend yield. Target price Ksh 540

@AmbokoJH Ksh 600 would still be a dividend yield of 11.67% .....that's cheap. Compared with yield return of 365 days T bill which is yielding 8.9%....a fair BAT price from dividend yield perspective should be about 9-10% yield (Ksh 700-770)...

I can't wait for the markets to open tomorrow to see where BAT Kenya will be playing at. The manufacturer's total 2025 dividend proposed at Kes 70.0/share, a 40.0% y/y increase on the back of an 18.0% y/y jump in pre-tax profit which closed the year at Kes 7.7 billion. > Kes 600.0/share is certainly within the horizon, no?

And so it comes to pass that my no.1 pick for 2026 returns a final dividend of Ksh 60....Target selling price is now Ksh 600 giving Wanjiku a 20% profit in 2 weeks.

BAT comes in at final dividend of Ksh 60 per share (Total for 2025: Ksh 70 per share)

@WaruhiuFranklin Nice....hoping it hits the 50% subscription rate at least to have it listed. Only way we can get it in secondary market at Ksh 3

A lot of investors have already taken positions in KPC just a day or two before the IPO closes.

@WaruhiuFranklin Cash cow? If KPC was to even give 100% of its Earnings per share as dividends (impractical), the dividend yield would be only 4%. It has declared a dividend payment policy of 50% of profits, hence a dividend yield of 2%.

We all agree that Kenya Pipeline Company (KPC) has strong fundamentals. Everyone recognizes the company’s strong P&L performance with profit after tax of KES 7.5B for FY'25, a healthy balance sheet that is effectively debt-free and stable operating cashflows of KES 14.3B. But we are split when it comes to KPC’s valuation. Some estimate fair value at 9, others at 8.23, 6.40 or even 5.41. In my view, KPC valuation is justified by KPC’s large asset base of approximately KES 139B and its strong operating cashflows of KES 14.3B. I see KPC as a cash cow for investors.

@TheAbojani @cheruiyotkb @MihrThakar Sounds like a good deal when compared with international peers........but when compared with local energy NSE peers (KPLC, KenGen), it's a very poor deal. Maybe it should have been listed in London Stock Exchange

When you're valuing an energy infrastructure company, you look at how much cash it's generating relative to what you're paying for it. That's where multiples come in. KPC is trading at 8.1 times its annual operating profit (EV/EBITDA). Similar pipeline companies around the world trade at 10 to 16 times. On a P/E basis, KPC sits at around 22 times earnings; higher than the NSE 20 average of 11, but still below global infrastructure peers that trade at 16 to 25 times. The premium to local stocks makes sense. You're not buying a bank that's sensitive to interest rates or a consumer company that depends on spending patterns. You're buying a monopoly with regulated returns and 48% margins. The discount to global peers? That's your margin of safety. The market will eventually decide if KPC should be priced closer to its international comparables. Either way, the valuation suggests you got in at the lower end.

With a dividend payout ratio of less than 9% of net profits, it has lots of leg room to boost dividend yields going forward as it wipes out the negative working capital this year. Happy Hunting

KPLC is undervalued based on all metrics (price to book value, p/e). It has raised interim dividend by 50% indicating a likely trend for final year dividend in Sept and is currently trading cum dividend.