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Stocks of Orion Pharma Limited have been skyrocketing despite having no recently published price sensitive information.
After the disclosure of the third quarter of the fiscal 2021-22, the company itself did not come up with any price sensitive information.
But the company’s share price has been surging abnormally since this September 5, putting general investors into confusion whether any gamblers were there behind this unusual jump in share prices.
Until Monday, the company’s share price shot up from Tk96.9 to Tk140.4 per share, which was 45 per cent up, since September 5.
Observing the unusual price gaining, the authorities of the DSE served the company a show-cause notice dated September 8 asking it to explain the reasons behind that price rise.
In response, Orion Pharma replied to the DSE that it had no undisclosed price-sensitive information that could stimulate its share price, a common reply that many other companies provide in case of receiving such DSE notice.
The significant note here is that the company’s share price went down for four trading days in a row after it received the DSE notice.
Later, the company gained another 22 per cent in its share price until Monday.
The company’s shares traded at Tk140.40 per share, up 9.95 per cent versus the previous session.
A thing here is that, the company’s revenue from its two subsidiary power plants increased by 72 per cent to Tk82 crore in the Q3 of FY22 compared to the Q1 of the same year.
But then, the parent company’s share price did not rise significantly following that disclosure.
When contacted for a comment, BSEC Executive Director Mohammad Rezaul Karim told The Business Post, “The company had already received notice for the uneven share price rise. Later, after a four-day break, its share price again started moving towards the sky. So, we are keeping close eyes on it.”
On May 8, this year, the company had announced the renewal of contracts of its two subsidiary power plants – 100MW Orion Power Meghnaghat Limited and 100MW Dutch Bangla Power and Associates Limited – with the government to sell electricity under the ‘no electricity, no payment’ basis.
Following that disclosure, the company’s share price fell by 19 per cent in the next 14 trading days.
Since then, the company has not submitted any financial progress data to the DSE.
In the third quarter (January-March) of FY22, Orion Pharma posted a revenue income of Tk113.78 crore compared to Tk243.85 crore in the same period of the previous fiscal.
The company posted a net profit of Tk26.63 crore in the Q3 of FY22, compared to Tk24.68 crore in the same period of the corresponding year.
Its earnings per share (EPS) fell 38 per cent in the Q3 compared to the previous quarter.
According to the company’s financial data, its product sales in the domestic market stood at Tk214.43 crore as of March 2022, while exports were worth Tk10.9 crore.
The previous quarter’s domestic sales and exports were Tk139.9 crore and Tk6.41 crore respectively.
The company reported an increase in revenue from its subsidiary power plants in the first nine months of the fiscal 2021-22
The subsidiaries helped the company earn Tk48 crore in the first quarter of the fiscal 2021-22 which stood at Tk82 crore, up 72 per cent, in the third quarter of the same year.
Orion Pharma Company Secretary Ferdous Jaman, was contacted over the phone for a comment but could not be reached.
