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.
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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.
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.
