Listed automobile firm Car and General Kenya Plc ($CGEN) recorded an outstanding performance at the Nairobi Securities Exchange (NSE) in the third quarter of 2025, with its share price soaring by 85%, closing the quarter at KES 38.85 on September 30, 2025, from KES 21.00 on June 30, 2025. The rally has made the counter attractive, and here are reasons why the stock remains attractive to investors:
Sharp profit rebound in H1 2025
Car and General recorded an after-tax profit of KES 637.1 million in the first six months ended June 30, 2025, up 919.7% from KES 62.5 million in the first half of 2024. The surge in profit was largely driven by a 272% increase in profit from its associate Watu, and strong performance in Uganda and Tanzania.
Consistent Revenue Growth Across Markets
In the first six months ended June 30, 2025, the company’s revenue totaled KES 12 billion, up 9.6% from KES 10.97 billion in the same period last year. Sales in Kenya rose by 17% on account of increased motorcycle sales. In 2025, the company’s motorcycle sales grew to an average of 7,000 units per month from an average of 4,600 units per month in 2024. Tanzania sales grew by 5%, while poultry sales grew by 100%. Notably, since 2018, Car & General’s half year revenue has grown more than twofold to KES 12 billion recorded in 2025.
3. Declaration of an interim dividend
Car and General’s board of directors declared an interim dividend of KES 0.30 paid on September 12, 2025. This was the first interim dividend paid by the company since 2002. The dividend payout demonstrates the company’s commitment to returning value to its shareholders.
4. Car and General’s diversified investments that power future growth
On August 25, 2025, the machine and equipment vendor opened a modern engine rebuild centre in Nairobi through its wholly owned subsidiary, Cummins C&G. The firm’s investment in Watu is making progress, as well as its helmet manufacturing subsidiary, Boda plus. Currently, Boda plus’s operating profit is in positive territory.
Similarly, investments in 2-wheel and 3-wheel Electric Vehicles (EVs) in Kenya and 3-wheel compressed natural gas vehicles in Tanzania are on a positive trajectory. With all these developments, Car and General is set to increase its revenue, resulting to increased earnings.
As of October 9, 2025, Car and General’s share price stood at KES 51.75, gaining 33.2% since the end of the third quarter.
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