Unga of Kenya Hits Two-Month High on Valuation: Nairobi Mover

Unga Group Ltd. (UNGL), a Kenyan grain miller, rose to its highest level in more than two months on investor bets that its current price-to-earnings ratio makes the stock attractive.

The stock gained 6.7 percent to 9.6 shillings, the strongest since Jan. 16, by the 3 p.m. close in Nairobi.

“At its current valuation, Unga has obviously peaked somebody’s interest,” Aly Khan Satchu, chief executive officer of Nairobi-based investment company Rich Management, said in a phone interview today.

Unga has a price-to-earnings ratio of 2.69 while its peers in other countries have a ratio of about 10, Satchu said.

In the year to June 30, net income climbed to 441.04 million shillings ($5.34 million), from 236.2 million shillings a year earlier, the company said in September.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net.

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