The company said there were no price-sensitive information behind the unusual price hike
The share price of Rangpur Dairy and Food Products Limited jumped by 54% in just one and a half months.
Each share was sold at Tk12.4 on 1 December. Since then, it gradually went up, selling at Tk19.1 per share on Tuesday.
The company, which is engaged in manufacturing dairy and other food products, has also produced a wide range of pasteurised milk since 2007.
In response to a query about the unusual price hike, Rangpur Dairy has informed the Dhaka Stock Exchange that there was no undisclosed price sensitive information.
The Covid-19 pandemic threw the food industry in trouble, biting on the revenue and the profit of the companies in the sector.
For the pandemic shock in the last 2019-2020 fiscal, Rangpur Dairy's profit dropped by 44% though its revenue was similar to the previous fiscal year.
Though the pandemic situation is going on, its revenue increased in the July-September quarter of fiscal 2020-2021.
In this period, the company's total revenue stood at Tk15.61 crore, which was higher than Tk15.57 crore at the same time of the previous fiscal year.
The company made a profit of Tk1.22 crore and its earnings per share (EPS) stood at Tk0.17.
In FY2019-2020, the company's revenue was Tk61.09 crore, and its after-tax net profit stood at Tk2.21 crore, which was Tk60.75 crore and Tk3.17 crore respectively.
As profit decreased, shareholders have received a 4% dividend – 2% cash and 2% stock – in the last fiscal year.
In the previous fiscal year, the company paid a 5% stock dividend.
About the profit fall, the company in its annual report said the costs of raw milk gradually increased by 20-25% over the year but sales of products remain unchanged. As a result, profit decreased despite positive growth in revenue.
The company, which got listed on stock exchanges in 2011, was placed under 'B' category after it had paid dividends below 10%.
As of November last year, sponsor-directors held 31.14%, general investors 58.94%, and institutional investors 9.92% shares of the company.