Investors’ dividend hope pushing Shahjibazar stocks to fly

Share prices of Shahjibazar Power Company Limited are skyrocketing, as investors are anticipating that the company will perform better and declare a handsome dividend for the fiscal year 2021-22.

The company secured a rise in net profits in the last three consecutive fiscal years, luring investors the most.

The company released its third-quarter report for the fiscal year 2021-22 in March this year.

In the next one to two months, the final financial report will get reviewed and, subsequently, the company will likely announce a dividend for its shareholders.

In the recent trading sessions on the Dhaka Stock Exchange (DSE), the company’s share prices were seen jumping, as investors were anticipating a lucrative dividend to be announced by the company.

However, the power-generating entity has not yet revealed any fresh financial disclosure.

But that rise in its share price seemed abnormal to the authorities of the DSE and subsequently, the stock exchange served the company a show-cause notice asking about the reasons behind that steep rise in its share price.

In response, the company on Thursday replied that it had no fresh undisclosed price-sensitive information that could stimulate its share price.

The increase in the share price of the company began on August 28 this year. At the end of the trading session of that date, its share price stood at Tk68.4 per share. Later on, the stock prices rose to Tk 88.7 per share on September 4.

Though its stocks had been fluctuating for a few trading sessions, its stocks further gained another 19 per cent from September 18 to September 22.

On Thursday, its stock prices surged to Tk100.8 per share on the DSE trading floor.

The company had reported the highest revenue and profit in the Q3 of the FY22 in the last three years.

Market insiders said investors were now anticipating the company would register a better profit at the year-end as it had registered a handsome profit in the Q3 of the fiscal year 2021-22.

Investors are anticipating that the company would declare a handsome dividend for the fiscal year 2021-22.

According to the financial report, the company posted revenue of Tk 64.18 crore in the Q3 of the fiscal year 2021-22 versus Tk 52.45 crore in the fiscal 2020-21.

The company’s net profit shot up by 55 per cent in the Q3 of FY22 compared to that in the FY21.

The company’s net profit stood at Tk41.19 crore in the Q3 of FY22 against Tk26.49 crore in the same period of the previous fiscal.

According to the financial report, the company’s commercial operations halted at in time of the Covid-19 epidemic. That’s why its earnings per share and revenue fell in the fiscal 2020-21.

Incorporated as a private limited company in November 2007, Shahjibazar Power Company Limited converted to a public limited company in September 2009.

It produces electricity from natural gas and supplies it to the Bangladesh Power Development Board (BPDB) under a 15-year power purchase agreement since 2008.

Sponsors and directors jointly held 60.29 percent stake in the company while, institutional investors and the general public owned 18.36 percent and 21.35 per cent respectively till August this year.