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BSCCL's share price doubles in three months

July-December EPS of the company shows unusual rise

FE Report | February 25, 2019 00:00:00

The share price of Bangladesh Submarine Cable Company Ltd (BSCCL) rose 108 per cent within three months as its earnings soared.

The company's share price hit at Tk 91.70 each since November 25, last year to close at Tk 176.20 on Sunday at the Dhaka Stock Exchange. Its share price was Tk 85.50 on November 25, 2018.

The state-run company's share traded between Tk 71.50 and Tk 177.50 each in the last one year. The company's share also hit one year highest price level on Sunday.

The company also dominated the day's turnover chart with 2.85 million shares worth Tk 489 million changing hands which was 8.24 per cent of the day's total transactions.

The Dhaka Stock Exchange (DSE) served show-cause notice on the company on January 21. The company informed that there was no undisclosed price sensitive information for recent unusual price hike of its shares.

Even after being served show-cause notice, the price of the company has not stopped rising which may hit investors, said an analyst.

He noted that firstly the investors should be careful about the unusual price hike of any companies' share.

The company's earnings per share (EPS) rose to Tk 0.96 for October-December, 2018 as against Tk 0.04 for October-December, 2017.

In six months for July-December, 2018, its EPS was Tk 1.43 for as against Tk 0.06 for July-December, 2017, registering an increase of 2283 per cent.

The net operating cash flow per share (NOCFPS) also rose to Tk 3.49 for July-December, 2018 as against Tk 1.08 for July-December, 2017.

"Earnings per share rose due to increase in revenue and no significant additional expenditure against the increased revenue," said the company in a statement.

The company noted that the net operating cash flow per share also increased due to emphasised of the company on revenue collection and taking some steps for realisation which led to significant increment of cash received from clients and there was no cash flow due to extraordinary transaction during this period.

Bangladesh Submarine Cable, which was listed on the Dhaka bourse in 2012, recommended only 5.0 per cent cash dividend for the year ended on June 30, 2018. Accordingly, the company is now trading in "B" category.

The company's paid-up capital is Tk 1.64 billion and authorised capital is Tk 10 billion, while the total number of securities is 164.91 million.

The government owns 73.84 per cent stake in the company while institutional investors own 14.96 per cent, foreign investors 3.04 per cent and the general public held 8.16 per cent as on January 31, 2019, the DSE data shows.

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