Square Pharmaceuticals PLC, the leading pharmaceutical manufacturer in the country, has surpassed the Tk20,000 crore market capitalization threshold after a nine-month interval, fueled by a recent surge in its share price.
According to the Dhaka Stock Exchange (DSE), the company’s share price has increased by 11% since early July, reaching Tk229.80. Consequently, Square Pharma’s market cap has risen by Tk1,959 crore to Tk20,370 crore, positioning it as the second-highest valued company on the DSE.
The last time the company achieved this milestone was on 8 August 2023, when its market cap peaked at Tk20,973 crore, before gradually falling below the Tk20,000 crore mark by 9 October.
Grameenphone continues to hold the top position in market capitalisation at Tk42,224 crore, contributing 11.59% to the total market cap of the DSE. In contrast, Square Pharma represents 5.59%.
Analysts credit Square Pharma’s attractiveness to its robust fundamentals. The company has consistently demonstrated double-digit growth in both revenue and profit, while also maintaining a history of over 100% cash dividends for the past three years.
Despite its strong performance, the stock has been perceived as undervalued, with a price-to-earnings (P/E) ratio of 8.15 based on unaudited financials and 9.73 based on audited results – both figures falling below the DSE’s average P/E of 10.51.
This discrepancy in valuation has drawn investors eager to take advantage of the potential upside, according to analysts.
According to Square Pharma’s most recent shareholding disclosure (June 2025), sponsors and directors own 43.59%, institutional investors hold 14.05%, foreign investors possess 15.14%, and the general public owns 27.22% of the company’s shares.
In the first nine months of FY25, the company’s revenue reached Tk5,784.64 crore, reflecting an 11% year-on-year increase.
Market insiders indicate that during a difficult economic phase characterized by high inflation, the prevalence of diseases has benefited drug manufacturers, as consumers have been compelled to purchase medications.
According to the company’s financial statement, Square Pharma was unable to protect itself from the effects of inflation, which resulted in a sharp rise in the costs associated with purchasing raw materials.
Its profit increased by 16% year over year to Tk1,874.80 crore in July-March of FY25. Its earnings per share were Tk21.15 at the end of March, down from Tk18.24 a year earlier.
The company reported Tk2,012.87 crore in revenue and Tk605 crore in net profit for the January-March quarter, which represents a 22% and 23% year-over-year rise, respectively.
