Orion Infusion stock soars by 815% in 6 months

The stock price of Orion Infusion Ltd rocketed up as much as 815 per cent after the company revealed its third quarterly results on April 8 this year.

But the company registered a 36 per cent growth in net profit for the Q3 of the fiscal year 2021-22. 

So, it is apparent that the unsteady rise in stock price of the publicly traded company is impertinent to its steady financial progress. 

The company did not also release any financial progress information after the disclosure of the Q3 report, according to the Dhaka Stock Exchange (DSE) data.

Amid this thriving stock, there are rumors that the company may have declared stock dividends for the fiscal year 2021-22. 

Because currently the company’s paid-up capital base stands slightly higher than Tk 20 crores which it needs to lift to Tk 30 crore by December this year to comply with regulatory requirements. 

But according to the DSE data, the company has been paying off cash dividends at a rate of more than 10 per cent per year since 2015. 

The company released its Q3 results for FY22 on April 8 this year. On that day, its stock was traded at Tk 82.3 per share on the trading floor of the DSE.

But surprisingly the company’s share price started skyrocketing after two months it revealed the disclosure.  

On August 2, its stock price reached Tk 117.7. Despite some minor corrections, its stock price had never fallen below this figure since that date. 

The company’s share was traded at Tk 753.7 per share on Thursday.

Meanwhile, the DSE served the company query notices four times asking why its share price was flying unusually. 

Despite facing show-cause notices, never its stock price had any symptoms to stabilise. 

And conventionally, it replied to each of DSE’s notices that it had no undisclosed price-sensitive information that could stimulate its stock price.

When asked, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim told The Business Post, “The matter regarding Orion Infusion has come to our attention. When investors show over interest in any company, then the particular stock price rises abnormally disregarding any financials.”

Orion Infusion’s net profit increased by 36 per cent to Tk 91 lakh in the third quarter (January-March) of fiscal 2021-22, against the tally of Tk67 lakh during the same period last year.

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 fiscal 2021-22, with a gross profit of Tk 9.62 crore and a net profit of Tk 1.42 crore.

The company’s earnings per share (EPS) for the Q3 in fiscal 2021-22 stood at Tk0.45 against Tk0.33 in the corresponding period of the previous fiscal.

Its net asset value (NAV) per share stood at Tk13.55 till March 2022 compared to Tk13.10 in June 2021.

Ferdous Jaman, the company secretary of Orion Infusion Limited, did not respond to phone calls for comment.

According to the DSE data, the company’s per-share traded between Tk75 and Tk754 in the last year.