Shinepukur Ceramics, a subsidiary of the Beximco Group, led the trading volume on the Dhaka Stock Exchange (DSE) last week. The company’s share price has also seen a consistent rise over the past three weeks. Notably, the share price of this unprofitable ceramics firm has doubled within the last month.
Data from the DSE indicates that on February 16, the market price of Shinepukur Ceramics’ shares was Tk 11.40. Following this, the share price surged to Tk 25.20 by Thursday, reflecting a continuous upward trend. This represents an increase of Tk 13.80, or 121 percent, over the course of one month.
Despite this significant rise in share price, the company continues to report losses. According to the most recent half-year financial report for July to December, Shinepukur Ceramics recorded a loss exceeding Tk 21 crore in the first six months of the 2024-25 fiscal year, resulting in a negative earnings per share (EPS) of Tk 1.35. Nevertheless, the share price has been on the rise for a month, although market participants remain uncertain about the underlying reasons for this increase, suspecting that it may be driven by speculation.
Following the political transition in August of last year, an advisory committee was established to make decisions regarding Beximco Group companies. This committee proposed selling shares of several Beximco companies, including Shinepukur Ceramics, to cover employee salaries. However, due to various challenges in executing this plan, the government ultimately abandoned the share sale initiative and instead provided financial support to settle the outstanding wages of workers from Beximco’s closed enterprises.
Shinepukur Ceramics led the trading volume in the Dhaka market last week, with an average daily trading volume of Tk 160 million over the five working days. The company represented approximately 3.5 percent of the overall trading volume in the market. In addition to its trading performance, Shinepukur Ceramics secured the second position in terms of price appreciation, with its share price rising by Tk 5.20, which translates to an increase of over 26 percent during the same period.
When inquired about the recent surge in Shinepukur Ceramics shares over the past month, DSE Director Minhaj Mannan shared with Prothom Alo that many general investors harbor concerns regarding the Beximco Group’s shares, believing that the authorities have been downplaying their earnings and profits for various reasons. Additionally, there are speculations surrounding potential changes in ownership of Beximco’s listed entities. Some market manipulators are capitalizing on these narratives to drive up the prices of these shares.
DSE data indicates that following the political shift in the country in August of the previous year, the share price of Shinepukur Ceramics, a Beximco-owned company, began to decline in the stock market. On July 9, the shares were valued at Tk 38, but by October 27, the price had plummeted to Tk 10 due to a persistent downward trend. This represents a significant drop to about a quarter of its value within two and a half months. However, the share price began to recover starting in mid-February.
Shinepukur Ceramics, a subsidiary of the Beximco Group led by Salman F. Rahman, has been listed on the stock market since 2008. In the last fiscal year, which concluded in June, the company announced a 2 percent cash dividend for its shareholders. The ownership structure consists of 50 percent held by entrepreneurs and directors, while the remaining 50 percent is distributed among institutional and individual investors. It is classified as a medium-quality ‘B’ class company in the stock market.
