Is  Bd Auto Cars over priced for gambler’s choice ?


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Is  Bd Auto Cars over priced for gambler’s choice ?

The miracle of a CNG refueling stations is that its share cost in the market is six times higher than the cost of the overall properties of the company.

The value of the entire company, Bangladesh Autocars Ltd. as estimated its annual report 2021 is Tk 5.34 crore while the market value of its 4.3 million share is Tk 61.34 crore on July 14, 2022.

According to the DSE website the each share value of the company was Tk 141.80 as traded on the last day of the week. The company offloaded its 4.3 million shares through initial public offerings (IPO) at a rate of Tk 10 each.

The basic earning per share of the company rose to Tk 0.44 as on July 31, 2022 against the same period Tk Tk 31 in 2021. The company awarded cash dividend only 4 percent which reflects that if an individual invest Tk 100 to the company he could earn a slim Tk 4 a year.

When asked Abu Raihan, a private university professor and an analyst of capital market said this is absolutely unusual and only possible in Bangladeshi markets.

Sources said the company’s price earnings ratio rose to Tk 262.33 calculated under the basic EPS of the company’s core operation. While the price earnings ratio rose to Tk 415.95 on July 14, 2022 according to its audited financial statements.

When asked a representatives of the company claimed that despite Corona Virus Pandemic effect the company performed very well of its crore business. The company earned only Tk 1.9 million in its third quarter ended March 31, 2022 from its from its both refueling and conversion business.

According to the company website its 58.26 per cent share is holding by general investors while 30.06 per cent share is holding by its sponsors and remaining 11.68 per cent share is holding by institutional investors.

The Bangladesh Autocars Ltd. was incorporated on 01 August, 1979 in Bangladesh as a Public Limited Company under the Companies Act, 1913 (Repealed in 1994) and its shares are listed in the Dhaka Stock Exchange Ltd. The Company produced three Wheelers Auto Tempo under technical Collaboration of Piaggio & C s.p.a (manufacturer of world famous Vespa Brand). Due to the government policy to ban two stroke three wheeled vehicles, the company had to stop production of three wheelers Auto Tempo during the year 1999. Now, the company has CNG Convert Workshop for the Vehicles and, CNG Refueling Station.




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