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After a miraculous 224 per cent rise in share prices of Orion Infusion Limited in less than a month only, the share prices of the company dropped yesterday, leaving many investors into worry about the future of their investments in the company.
Orion Infusion was traded at Tk129.1 per share on August 14 this year. Later the company’s shares started skyrocketing, finishing at Tk419 last Thursday, up 224 per cent within only 17 straight trading sessions.
After this unusual surge, the company’s shares suffered yesterday, giving up 2.72 per cent or Tk12 per share to close the day at Tk407 on the Dhaka Stock Exchange.
The company’s net profit increased by 69 per cent to Tk91 lakh in the third quarter (January-March) of the fiscal 2021-22, compared to the tally of Tk53 lakh in the previous quarter (October-December) of the same fiscal.
Against this financial situation, the constant rise in its share prices seemed unusual to the authorities of the DSE.
This was because the Dhaka bourse served the company a show-cause notice on August 25 asking to explain the reasons behind that unusual jump in its share prices.
But the company replied saying there was no price-sensitive information behind that price hike.
During that time, investors’ interest in the company’s shares grew significantly with a trading of 18 lakh shares of the company on the first day of September.
During the time, 5 lakh shares, the lowest in number, of the company were traded on August 14.
According to the publicly-traded company’s financial report, its total revenue stood at Tk 23.98 crore in the first quarter (July-September) of the fiscal 2021-22, with a gross profit of Tk 9.62 crore and a net profit of Tk 1.42 crore.
The revenue, however, dropped by 20 per cent in the next quarter (October-December) compared to the first quarter with a lower net profit of Tk 53.85 lakh.
The company’s revenue again rose to Tk18.14 crore in the third quarter (January-March) of the fiscal with a net profit of Tk 91.5 lakh compared to Tk64.06 lakh during the same period last year.
The company’s earnings per share (EPS) for the Q3 in fiscal 2021-22 stood at Tk0.45 that was Tk0.33 in the corresponding period of the fiscal 2020-21.
Its net asset value (NAV) per share was Tk13.55 as of March 2022 compared to Tk13.10 as against June 2021.
Ferdous Jaman, the company secretary of Orion Infusion Limited, did not respond to phone calls for a comment.
According to DSE data, the company’s per share traded between Tk75 and Tk437.9 in the last one year.
The company that went public in 1994, gave a 10% cash dividend to its shareholders for the year 2021. It also paid a 10% cash dividend for the year 2020.
