Central Pharma shares soar 32% in five days

The share price of Central Pharmaceuticals Ltd rose 32% in just five trading sessions on the Dhaka Stock Exchange (DSE) without any price-sensitive information.

The share price increased to Tk19.5 each on Monday, from Tk14.7 on 27 July.

For this unusual price hike, the country's premier bourse sent a query to the company on 2 August.

In its reply, the company said there is no undisclosed price sensitive information for this recent price hike and the increase in volumes of shares.

Following this, the share price dropped 3.5% on Tuesday.

During the pandemic, most of the country's drugmakers have registered significant growth in revenue and profit but remarkably the Central Pharmaceuticals had incurred huge losses in fiscal 2019-2020.

As the company fell into losses, its shareholders did not get any dividends.

The company said in its financials due to pandemic and temporary factory closure by the Directorate General of Drug Administration, its net turnover decreased 54.44% to stand at Tk14.01 crore, from Tk30.74 crore in the previous fiscal year.

While the company had incurred a loss of Tk110.70 crore in fiscal 2019-2020, its net profit was Tk5.70 crore in the previous fiscal year.

After the blow in the last fiscal year, the company returned to profit in the first half of fiscal 2020-2021.

In the July-December period, the company reported a profit but, in the January-March quarter, it fell into losses.

In the first nine months of fiscal 2020-2021, its net turnover stood at Tk13.94 crore, the profit at Tk73 lakh, and the earnings per share (EPS) at Tk0.06.

At the corresponding period of the previous year, it had incurred a loss of Tk84 lakh and the loss per share stood at Tk0.07.

In the July-December period, its turnover was Tk12.11 crore and the profit stood at Tk1.95 crore.

But in the January-March quarter, it incurred a loss of Tk1.22 crore and the loss per share stood at Tk0.10 while the loss per share was Tk0.18 in the corresponding period of the previous fiscal year.

Central Pharmaceuticals Ltd was listed on local stock exchanges in 2013.

As of June 2021, sponsors and directors held 25.89%, institutional investors 16.96% and general shareholders 57.15% shares of the company.