Despite business struggles, Khan Brother PP Woven Bag shares surge abruptly

Infographic: TBS

While the business situation of Khan Brother PP Woven Bag Industries is dwindling day by day, the share prices of the company have witnessed a sharp rise in recent trading sessions.

The share price of the loss-making company, which manufactures and exports bulk containers (FIBC/jumbo bags) and polypropylene (PP) woven bags, sacks, and fabrics, soared 46% in just four days.

Khan Brother PP Woven Bag Industries had been incurring losses for four consecutive years until 2022-23.

In the first nine months of 2023-24 financial year, it incurred significant losses as its revenue significantly fell.

The annual financials of the company for the fiscal year ending on 30 June are yet to be published. Listed companies must publish their annual financials within 120 days after the fiscal year's completion.

According to the Dhaka Stock Exchange (DSE), on 2 July, its share price was Tk96 each, which soared to Tk140.4 each yesterday.

Despite the worsening business situation over the years, Khan Brother PP Woven Bag Industries' share price witnessed an abrupt rise since September last year. In the middle of February, it rose to Tk231 each, the highest in a year.

After reaching the peak, the share price of the company began to decrease, falling to Tk96 each on 2 June.

Now, the share prices have been increasing abruptly without any material information about the company that might impact its financials.

Previously, it said on 28 January, that there is no undisclosed price-sensitive information for the recent unusual price hike of shares.

According to its financials, in the third quarter, during the July to March period of the 2023-24 fiscal year, Khan Brother PP Woven Bag Industries saw its revenue fall by 38% to Tk5.26 crore. 

The company failed to reach the break-even point, incurring a loss of Tk26.49 lakh from operating activities.

For the first nine months of the outgoing fiscal year (FY24), Khan Brother PP Woven Bag Industries incurred a total loss of Tk46.97 lakh.

The earnings per share (EPS) of the company stood at Tk0.05, up from Tk0.03 as of March 2023.

Compared to the same period in the previous fiscal year, the company's net loss surged by 80% as the loss was Tk26.09 lakh from July to March of the 2022-23 fiscal year.

The company was listed on the stock exchanges in 2014, raising funds from the capital market.

In FY23, Khan Brother PP Woven Bag Industries did not pay any dividends to its shareholders.

Previously, it had paid a 2% cash dividend for FY22.