Stocks
Standard Ceramic Sees Share Surge Despite Fiscal Challenges
Despite facing a substantial working capital shortfall, the share price of Standard Ceramic Industries Limited experienced a significant uptick of 9.96% at the Dhaka Stock Exchange (DSE). The tableware producer’s shares closed at Tk151.2 apiece on Tuesday, compared to Tk137.5 in the previous trading session. During the day, a total of 1.86 lakh shares were traded at Tk2.77 crore.
Standard Ceramic’s share price had been stagnant at the floor price of Tk108.7 from August to November 2023. However, from 28 November to 12 December, the share price witnessed a remarkable 76% jump to Tk191.4. In response to a DSE query on 13 December, the company asserted no undisclosed price-sensitive information influencing the share price.
Despite the recent surge, the company reported a net loss of Tk12.29 crore in fiscal 2022-23, a significant increase from Tk1.93 crore in the previous fiscal year. Its revenue also declined by 27% year-on-year to Tk24.44 crore. The auditor, ARTISAN, highlighted a working capital shortfall, leading to reliance on bank borrowing for deficit financing.
With a cumulative loss of Tk20 crore, Standard Ceramic’s shareholders’ equity stands at negative Tk9.57 crore. The current liabilities of Tk40 crore against assets of Tk17.77 crore, which is 2.25 times higher than the assets, poses going concern threats to the company, as indicated by the auditor.
The company has not paid dividends to shareholders for the last two consecutive years due to losses. In the annual report for FY23, Standard Ceramic attributed the distortion in the ratio between current assets and liabilities to factors such as low demand, high inflation, fluctuating dollar rates, irregular supply, and high gas and electricity rates.
Market insiders raised concerns over the company’s limited shares, with only 64.60 lakh available, of which 45.22 lakh are tradable in the secondary market. This limited float may expose the company to manipulation risks.
Dhaka Stock Market DSE, Bourse on the last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
