Stocks
S. Alam has 13 times higher debt rate than paid-up capital
Dhaka Stock Exchange, (DSE) S. Alam Cold Rolled Steels Limited listed in the stock market has debt ratio is much higher than the paid-up capital. A review of the company’s report showed that the debt was about 13 times higher than the paid-up capital. Added, the company’s assets against debt are one-seventh. Meanwhile, the interest amount is more than 7 times compared to the annual income of the company. The matter came up after analyzing the information given to DSE and the financial report of the company for 2021.
According to sources, the paid-up capital of this company, which was listed in the Bangladesh Stock Market in 2006, is Tk 98 crore 37 lakh. According to the current share price, the market value of the company is Tk 327 crore 57 lakh. But the company has taken loans of more than Tk 1 thousand 300 crore from many banks.
S. Alam Cold Rolled Steels Limited has received short-term loans of Tk 1,347 crore and 87 lakhs from various banks. Even if calculated at the rate of 8 percent, the company will have to pay Tk 59 crore 11 lakh in one year only for interest. But according to the financial report of the company for the year 2021, the company made an after-tax income of Tk 8 crore 23 lakh 15 thousand in one year. A question has also been raised about how to pay the interest of Tk 59 crore with an income of Tk 8 crore a year. Stock market people say that if the company’s income does not match the bank loan, there is a possibility of the company going bankrupt. This also increases the risk of casual investors being harmed.
It is reported that the inventory of S. Alam Cold Rolled Steels has also been dropping continuously for the last 4 years. In 2019, the asset value per share of the company was 19 taka 46 paisa. And the value of total assets was 191 crore 43 lakh 1 thousand 606 taka. On the other hand, according to the latest financial report of the company, the asset value per share of the company as on June 30, 2022 was Tk 18.56 paisa. As such, the asset value of the company in 2022 stood at 182 crore 57 lakh 67 thousand 616 taka.
When asked, the company secretary of S. Alam Cold Rolled Mills Limited. Sohail Amin told Orthosongbad, S. Alam Cold Rolled Public Company, all details are given, please check. Also, when asked whether a company with a paid-up capital of less than 100 crore takas can get a loan of 1,300 crore taka, while he refused to answer the question.
Al Amin, associate professor and share market analyst of Dhaka University’s accounting and information department, asked whether a company can get 13 times more debt than its paid-up capital. He told Orthosongbad that banks give loans to companies considering the equity-debt ratio. Banks review whether the company has the assets to give such a large amount.
In response to the question whether there is a risk in investment if the amount of debt is more than the paid capital, he said that many ordinary investors invest with the advice of others. But no one forces them to buy any shares. They often invest without looking at a company’s credit rating, risk etc. Therefore, investment decisions can be correct if the risk is taken into account.
Incidentally, S. Alam Cold Rolled Steel Mills Limited was listed in the stock market in 2006. General investors are holding 17.43 percent shares of the company. Institutional investors hold 29.50 percent shares. The remaining 53.07 percent shares are owned by its entrepreneurs-directors.
Dhaka Stock Exchange DSE, Bourses on the last working day of the week, March 23, ended with price index hikes & turnover drops.
This information is known from DSE sources.
286 crores 97 lakh shares were traded in DSE on this day. 41 crores 51 lakhs less trading was done in DSE today compared to the previous workday, 22 March, Shares worth Tk 328 crores 48 lakh shares were traded in DSE last time, Wednesday.
The benchmark index DSEX hiked 8.66 points or 6,206. The Shariah-based index DSES rose 0.75 points or 1,353, and the blue-chip index DS30 gained 2.58 points or 2,218.
Of the issues traded, 74 advanced, 24 declined, and 205 remained unchanged.
Legacy Footwear Limited ranked top gainer on DSE, the share price increased by Tk 5.1 paisa or 9.98 percent. On this day, the share was last traded at Tk 56.20 paisa.
On the other hand, Bengal Windsor Thermoplastics Ltd ranked top loser on the DSE, the share price dropped by Tk 0.5 paisa or 1.68 percent. On this day, the share was last traded at Tk 29.20 paisa.
DSE topped on trade Eastern Housing Limited 34 crores 22 lakh 70 thousand takas of shares of the company have been traded.
A total of 49 companies’ shares were traded in the Block on Dhaka Stock Exchange, 79 lakh 23 thousand 878 shares of the companies were traded. The financial value of which is 37 crore 27 lakh taka.
Dhaka Stock Exchange DSE, Bourses on the fourth working day of the week, March 22, ended with price index & turnover drops.
This information is known from DSE sources.
328 crores 48 lakh shares were traded in DSE on this day. 21 crores 12 lakhs less trading was done in DSE today compared to the previous workday, 21 March, Shares worth Tk 349 crores 61 lakh shares were traded in DSE last time, Tuesday.
The benchmark index DSEX dropped 16.26 points or 6,206. The Shariah-based index DSES lost 3.34 points or 1,352, and the blue-chip index DS30 shed 5.18 points or 2,215.
Of the issues traded, 17 advanced, 82 declined, and 213 remained unchanged.
Legacy Footwear Limited ranked top gainer on DSE, the share price increased by Tk 3.8 paisa or 8.03 percent. On this day, the share was last traded at Tk 51.10 paisa.
On the other hand, Bengal Windsor Thermoplastics Ltd ranked top loser on the DSE, the share price dropped by Tk 2.4 paisa or 7.48 percent. On this day, the share was last traded at Tk 29.70 paisa.
DSE topped on trade Eastern Housing Limited 19 crores 14 lakh 10 thousand takas of shares of the company have been traded.
A total of 53 companies’ shares were traded in the Block on Dhaka Stock Exchange, 73 lakh 24 thousand 180 shares of the companies were traded. The financial value of which is 55 crore 76 lakh taka.
Dhaka Stock Exchange DSE, Bourses on the third working day of the week, March 21, ended with price index & turnover hikes.
This information is known from DSE sources.
349 crores 61 lakh shares were traded in DSE on this day. 4 crores 95 lakhs less trading was done in DSE today compared to the previous workday, 20 March, Shares worth Tk 344 crores 66 lakh shares were traded in DSE last time, Monday.
The benchmark index DSEX hiked 18.72 points or 6,222. The Shariah-based index DSES rose 5.90 points or 1,355, and the blue-chip index DS30 gained 4.80 points or 2,220.
Of the issues traded, 87 advanced, 14 declined, and 224 remained unchanged.
Legacy Footwear Limited ranked top gainer on DSE, the share price increased by Tk 4.3 paisa or 10.00 percent. On this day, the share was last traded at Tk 47.30 paisa.
On the other hand,Renwick Jagneswar & Co (Bd) Ltd ranked top loser on the DSE, the share price dropped by Tk 15.7 paisa or 2.05 percent. On this day, the share was last traded at Tk 750.10 paisa.
DSE topped on trade Sea Pearl Beach Resort & Spa Limited 30 crores 78 lakh 18 thousand takas of shares of the company have been traded.
A total of 51 companies’ shares were traded in the Block on Dhaka Stock Exchange, 45 lakh 77 thousand 172 shares of the companies were traded. The financial value of which is 36 crore 90 lakh taka.
