Unga Group Ltd., 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.