Share price of BD Thai Aluminium soars despite heavy losses

BD Thai Aluminium, a publicly listed company in Bangladesh, witnessed a significant influx of 82 per cent in its share price within a month despite the company incurring a loss in the last fiscal year.

The company's revenue also dropped by 20 per cent YoY to Tk93 crore in the fiscal 2022-23, and it suffered a loss of Tk6.60 crore during the same period.

Third Quarter Summary                  

BD Thai also faced a loss of Tk2.37 crore in the July to September quarter of this fiscal, with a YoY turnover decline of 32 per cent to Tk17 crore. The Dhaka Stock Exchange (DSE) observed the unusual increase in the share price and sent a query letter to BD Thai seeking an explanation.

Persistent geopolitical crisis takes its toll 

However, the company responded that it has no undisclosed price-sensitive information that might have impacted its share price. In its FY23 annual report, BD Thai's Chairperson Rubina Hamid mentioned that the company could not achieve its desired level of net profit due to the high inflationary environment caused by the energy crisis, depreciation of the taka, and concerns about the adequacy of the dollar reserve.

Effects of international trade dynamics 

The company's acting Managing Director, Abdul Bari, also stated that they are facing challenges in keeping their delivery consistent to the national and local projects due to the sharp rise in import prices caused by the higher dollar rate and the very high global aluminium raw material prices.

Division of BD Thai Shares

The state-owned Investment Corporation of Bangladesh holds 14.97 per cent shares in BD Thai, while Rubina Hamid, sister of Health Minister Zahid Maleque, holds 2.34 per cent shares. The Health Minister himself owned 9.72 per cent of the company's shares, but recently, the Maleque family sold off their entire holdings in Sunlife Insurance to Green Delta Insurance.

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