Stocks
Emerald Oil’s Stock Soars by an Astounding 190% Despite Heavy Debt Load
Emerald Oil Industries Limited, Listed on the Stock Market, Witnesses Rapid Surge in Share Prices Over a Month. Market Analysts Blame the Company’s Poor Management and Financial Mismanagement for the Share Price Increase, Failing to Deliver Returns to Investors for Six Years.
According to Reliable Sources, the Food and Agro-based Company’s Share Prices have Increased by two and a half times within Just 22 Trading Days. The Dhaka Stock Exchange (DSE) data reveals that on April 11, Emerald Oil’s shares were valued at Tk 32.70, while on May 21, the share price stabilized at Tk 95.10. Consequently, the company’s shares have witnessed an astonishing growth of Tk 62.40 or 190.82% during a span of 23 trading days.
It is worth noting that Emerald Oil Industries Limited was listed on the country’s stock market in 2014. The company’s outstanding debt surpasses its paid-up capital. As per the DSE data, the company’s paid-up capital in the Z category stands at Tk 59.71 crore, while the total debt as of 2016 amounts to Tk 93 crore 40 lakh, with a long-term loan of Tk 62 crore 81 lakh and a short-term loan of Tk 30 crore 59 lakh. Additionally, the company owes Tk 81 crore to Basic Bank and BRAC Bank, which has now accumulated to nearly TK 100 crore including interest.
According to sources, since its listing in 2014, Emerald Oil Industries Limited has provided dividends to investors for only 3 years. In 2014 and 2015, the company offered a 10% cash dividend to its shareholders. The following year, in 2016, a 10% bonus dividend was given. However, no dividends have been provided to investors in the past 6 years.
In the latest financial report of 2016, Emerald Oil recorded its highest revenue. That year, the company earned Tk 3.33per share (EPS). The company has published financial reports for the years 2017, 2018, and 2019 in the food and agro sector. Unfortunately, the company has been experiencing losses in all three years. The closure of production in 2017 had a significant impact on Emerald Oil. In that year, the company incurred a loss of Tk 34.34 per share. The following year, in 2018, the amount of loss decreased to Tk 1.97 per share. Even in 2019, the company reported a loss of Tk 1.14 per share.
Read More: Deceased Person Presented as Insurance Company Director, Resulting in Loan Acquisition
When asked about this, capital market analyst Professor Abu Ahmed told Orthosongbad, “No matter what we say, there is no profit. Some people exist who do not consider the company’s performance or whether the business is good or bad. They are the ones who are active in the market. Once the share prices of a company rise, they are the ones behind it.”
He said that these are known as “serial trading” or “syndicate trading,” as per the Bangladesh Securities and Exchange Commission (BSEC). In the past, the prices of many shares have increased in this manner. Essentially, there is no value for good shares in the market. The value of good shares is not recognized beyond the floor price; it remains stuck at all floor levels.
Regarding all these matters, the Secretary of Emerald Oil, Sadia Afrin, did not agree to speak to ORthosongbad. She mentioned that she was busy communicating with the company’s Chief Regulatory Officer (CRO). However, it has not been possible to establish communication with the company’s CRO.
One of the listed companies, Aman Feed Limited discloses its financial reports for the third quarter, (January – March 24).
The company’s earnings per share (EPS) was loss Tk 0.11 paisa in Q3 of the current financial year (January – March 24). EPS was loss Tk 0.33 paisa during the same period last year. Consolidated NAV per share was Tk. 359.68 as of March 31, 2024.
One of the Listed companies, Exim Bank Limited has recommended 10% Cash Dividends for the year ended December 31, 2023.
In terms of financial performance, The Company has further informed Consolidated EPS of Tk. 2.33 for the year ended December 31, 2023. The Company has also reported Consolidated NAV per share of Tk. 23.00 for the year ended December 31, 2023.
The Annual General Meeting (AGM) of the company will be taking place on June 24, through the digital platform. The record date for this has been fixed at May 26.
One of the listed companies, Robi Axiata Limited discloses its financial reports for the first quarter, (January – March 24).
The company’s earnings per share (EPS) was Tk 0.20 paisa in Q1 of the current financial year (January – March 24). EPS was Tk 0.08 paisa during the same period last year. NAV per share was Tk. 12.90 as of March 31, 2024.
