SKICL, Acme Pesticides keep flying high since their debut on DSE

Buying stocks that rise multifold in a short period is every investor’s dream. But it is not easy to spot such stocks. Two newly listed companies on the Dhaka Stock Exchange have been so buoyant for a long period.

Sena Kalyan Insurance Company Ltd (SKICL) — a subsidiary of Sena Kalyan Sangstha of Bangladesh Armed Forces—has been soaring since November 7 when it debuted on the bourse.

It continued to rally for the 13th straight session with a rise of 9.84 per cent to almost Tk 33.9, making it the largest gainer on Tuesday.

After making its debut on November 14, Acme Pesticides—the agricultural product input making and distributing subsidiary of Sinha Group--- also kept rising for the ninth consecutive session soaring 9.7 per cent to Tk 21.2. It was the second-largest gainer of
the day.

However, the key question is whether the fabulous rising will be able to sustain in the long run and the investors should consider their past performance before betting on the two stocks, according to dealers.

Here are some available snapshots of the two companies.

SKICL reported Tk 1.68 crore in net profit for the three months ended September 2021 and its basic earnings per share stood at Tk 0.70 during the period, said the company in a filing with the Dhaka Stock Exchange earlier. The company’s pre-IPO net asset value (NAV) per share (considering pre-IPO paid-up shares) was Tk 23.64 as of September 30, 2021.

It raised Tk 16 crore through an initial public offering with a face value of Tk 10 each.

On August 11, the company got IPO approval from the Bangladesh Securities and Exchange Commission (BSE). The IPO proceeds are being spent on fixed deposits, investment in the capital market, purchase of floors, and initial public offering. Sena Kalyan Insurance was established in 2013.

On July 19, ACME Pesticides got IPO approval from the regulator to raise Tk 30 crore. The IPO fund is being used in building factories, installing electrical machinery, purchasing new machinery, repaying bank loans, and meeting IPO expenses.

Its EPS was Tk 0.47 for July-September 2021 as against Tk 0.48 for July-September 2020. NAV per share was Tk 18.95 as of September 30, 2021, and Tk 18.48 as of June 30, 2021.