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 second working day of the week, 30th September, ended with a negative performance in Indices and a hike in Turnover from the previous working session. This information is known from DSE sources.
503 crore 90 lakh taka shares were traded on this day. 22 crore 58 lakh more tradings were done in DSE today compared to the previous workday, 29th September, Shares worth Tk 481 crores 31 lakh shares were traded last time, Sunday.
The benchmark DSEX lost 33.61 points or 5,624 The Shariah-based index DSES dropped 7.36 point or 1,263 and the blue-chip index DS30 decreased by 9.57 points or 2,053.
Of the issues traded, 72 advanced, 299 declined and 25 remained unchanged.
Shahjibazar Power Company Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.76 percent. On this day, the share was last traded at Tk 45.00 paisa.
Dhaka Electric Supply Company Limited ranked top loser on the DSE, the share price dropped by Tk 1.80 paisa or 7.56 percent. On this day, the share was last traded at Tk 22.00 paisa.
DSE topped on trade is Pragati Life Insurance Limited 25 crore 35 lakh takas of company shares have been traded.
A total of 27 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 50 lakh 42 thousand 956 shares of the companies were traded. The financial value of which is 65 crore 60 lakh taka
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
