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 Exchange DSE, Bourse on the last working day of the week, 2nd May, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
710 crore 62 lakh taka shares were traded on this day. 125 crore 9 lakh more tradings were done in DSE today compared to the previous workday, 30th April , Shares worth Tk 835 crores 72 lakh shares were traded last time, Tuesday.
The benchmark DSEX added 30.99 points or 5,615 The Shariah-based index DSES gained 4.92 points or 1,232, and the blue-chip index DS30 increased by 12.55 points or 2,007.
Of the issues traded, 207 advanced, 140 declined and 48 remained unchanged.
Sinobangla Industries Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.95 percent. On this day, the share was last traded at Tk 44.20 paisa.
Rupali Bank PLC ranked top loser on the DSE, the share price dropped by Tk 4.10 paisa or 15.07 percent. On this day, the share was last traded at Tk 23.10 paisa.
DSE topped on trade is Sonali Aansh Limited 63 crore 49 lakh takas of company shares have been traded.
A total of 43 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 67 lakh 76 thousand 965 shares of the companies were traded. The financial value of which is 70 crore 01 lakh taka
8 listed mutual funds disclose their financial reports for the third quarter, (January – March 24). This information is known from DSE sources.
SEML FBLSL Growth Fund: earnings per unit (EPU) loss Tk 0.74 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.08 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.35 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.50 as of March 31, 2024.
SEML Lecture Equity Management Fund: earnings per unit (EPU) loss Tk 0.55 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.11 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.47 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 11.12 as of March 31, 2024.
AB Bank 1st Mutual Fund: earnings per unit (EPU) loss Tk 1.24 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.04 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.87 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 11.22 as of March 31, 2024.
Popular Life First Mutual Fund: earnings per unit (EPU) loss Tk 1.55 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.04 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.49 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.98 as of March 31, 2024.
EBL NRB Mutual Fund: earnings per unit (EPU) loss Tk 1.50 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.05 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.67 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.97 as of March 31, 2024.
PHP First Mutual Fund: earnings per unit (EPU) loss Tk 1.50 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.02 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.54 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.93 as of March 31, 2024.
Green Delta Mutual Fund: earnings per unit (EPU) loss Tk 0.94 paisa in Q3 of the current financial year (January – March 24). EPU was loss Tk 0.02 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.06 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.33 as of March 31, 2024.
DBH First Mutual Fund: earnings per unit (EPU) loss Tk 1.07 paisa in Q3 of the current financial year (January – March 24). EPU was loss Tk 0.018 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.92 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.19 as of March 31, 2024.
One of the Listed companies, Standard Bank PLC has recommended 2.5% Cash Dividend & 2.5% stock Dividend for the year ended December 31, 2023.
In terms of financial performance, The Company has also reported Consolidated EPS of Tk. 1.27 for the year ended December 31, 2023. NAV per share of Tk. 16.93 paisa.
The Annual General Meeting (AGM) of the company will be held on July 29, through the digital platform. The record date for this has been fixed at June 11.
