The share price of the listed lubricant blender, Eastern Lubricants, rose to a six-month high of Tk 1,969.30 per share on Sunday as investors went on an aggressive buying spree following the news of the addition of a new product to its product portfolio.
According to a stock exchange filing on Sunday, the state-owned Eastern Lubricants Blenders signed a contract a few days ago to distribute USA brand ERGON's transformer oil in Bangladesh.
Currently, the company sells lubricating oil, greases, base oil and bitumen. The transformer oil is a new addition to its portfolio.
Following the news, investors started aggressively buying shares of Eastern Lubricants. The transaction volume of the stock jumped three times on Sunday, compared to the previous day, taking the price 4.25 per cent higher to Tk 1,969.30.
The company disclosed that in order to diversify its business, Eastern Lubricants signed a deal with Premier Petroleum Products & Lubricants Limited (PPPLL), an authorised distributor of USA brand ERGON's transformer oil in Bangladesh, to work together provisionally for one year to sell and distribute transformer oil in the public sector.
However, the Dhaka Stock Exchange (DSE) is yet to receive details of the contract from the company. "It is to be noted that DSE has requested the company to provide a copy of the agreement," reads the disclosure.
Eastern Lubricants is a stable company and has been paying regular, handsome dividends to its investors. In FY25, the company secured a more than 91 per cent year-on-year increase in profit to Tk 68.57 million.
In the first nine months of FY26, the company earned a 52 per cent higher return of Tk 26.27 per share, compared to the corresponding period of the year before.
Based on the latest unaudited financial statements, the stock's price-to-earnings ratio stood at 51.57.
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