ML Dyeing mystery unfolds
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Tuesday
February 07, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
TUESDAY, FEBRUARY 07, 2023
ML Dyeing mystery unfolds

Corporates

Mahfuz Ullah Babu & Ahsan Habib Tuhin
20 February, 2020, 02:40 pm
Last modified: 20 February, 2020, 11:18 pm

Related News

  • China central bank to roll over lending tools to spur growth
  • Euro zone lending growth tumbles as higher rates bite
  • Paving the way towards growth and prosperity
  • Euro zone business activity back to growth in January -PMI
  • How the Bangladesh economy might fare in 2023

ML Dyeing mystery unfolds

After a 150 percent stock price hike in five months and a 75 percent in one month, the good news of export contract emerges that may contribute to over 25 percent growth in annual revenue

Mahfuz Ullah Babu & Ahsan Habib Tuhin
20 February, 2020, 02:40 pm
Last modified: 20 February, 2020, 11:18 pm
ML Dyeing mystery unfolds

ML Dyeing Limited, the listed yarn dyeing company of Far Group, witnessed a 150 percent hike in its stock price in the last five months when share prices of almost all companies were dipping down. 

Thanks to its increased revenue, net profit and very importantly, net profit margin. 

Yet, there had been questions among analysts whether the improved figures are enough to justify the stock price hike or the gains are merely a result of market speculation, or it involves any price manipulation attempt. 

The mystery kind of unfolded on Wednesday when the company announced that it had entered a sales or export contract with Kolkata's AMJ Narrow Fabrics Private Limited to supply them with 50 lakh pounds of dyed yarns. If delivered, the one-off sale alone will help the company's revenue grow by more than one-fourth this fiscal year. 

When contacted for details of the contract, AKM Atiqur Rahman, company secretary of ML Dyeing, told The Business Standard, "Pricing depends on market scenario. We will buy yarns from the market and dye those at our facilities and later export those to AMJ Narrow Fabrics. For sure, it will add to our revenues and hopefully, profits too."  

He declined to share further details and financial implications of the contract. 

The contract was signed on February 17 last year. The company's share price at the Dhaka Stock Exchange jumped from Tk33 to Tk58 in the last one month. 

General investors, like always, believe that insiders and a quarter of market players have been aware of such a positive development and have enjoyed the price hike too. 

"Without insiders' information, it is impossible to smell what is going on inside the company. The disclosed data of sale, profit and profitability improvement did not support the recent stock price hike, and we did not buy its shares," said an equity analyst at a top brokerage firm. 

"There is a serious lack of equity in the flow of price sensitive information in our market. Such unethical phenomena deprive general investors," said the analyst, who is also a Chartered Financial Analyst. 

"The regulator has the power to check all the fishy transactions and investigate whether there are any links between insiders and market actors."

Third Far Group company at DSE

The yarn dyeing entity entered the stock market in 2018 as the third company of Far Group. RN Spinning and Far Chemical Industries are the two other listed companies.  

Of those, RN Spinning's production was suspended following a fire incident at the factory. The April 2019 fire damaged the factory and inventories worth over Tk600 crore and the company is still dealing with the insurer for compensation.

The company was listed on the DSE in 2010, and has grown to a Tk392 crore enterprise in terms of paid-up capital through bonus and right share issuance. But now it is posting losses. Its share price is Tk4 at present.  

On the other hand, Far Chemical Industries was listed in 2014, and has increased its paid-up capital to Tk218 crore through issuance of bonus share each year. 

It is now posting moderate earnings per share – around Tk1 against face value of Tk10 per share. Stock price is also hovering around the face value. 

Sponsors and directors now hold nearly one-third shares – which is mandatory – in each of the three listed companies. 
 

ML Dyeing's performance 

The company mainly earns money by dyeing yarns for textile manufacturers.  

Its net profit margin – net profit as a percentage of revenue – in 2018-19 fiscal year was eight percent, which jumped to 14.48 percent in the first half of the current financial year. 

Its annual revenue in the last fiscal year was Tk247 crore – posting a four percent year-on-year growth. In that year, it dyed 1.8 crore pounds of yarns. In the first six months of the current fiscal year, its revenue increased by 18 percent compared to the same period of the previous year, and reached Tk144 crore. 

Last year, its annual net profit grew by 0.75 percent to reach Tk19.65 crore. The company disbursed five percent cash dividend alongside issuing 15 percent bonus shares for the year. The diluted earnings per share stood at Tk0.98. 

Later, in the first half of the current fiscal year, the company's net profit jumped by 65 percent to reach Tk20.8 crore from Tk12.62 crore during the same period of the previous year. 

"Though the industry was in pressure, our customers increased their orders over the period. Besides, we managed to increase recovery from receivables. The two helped increase our revenue and profit," said Atiqur Rahman. 

The company is yet to recover receivables worth around Tk100 crore as of December last.  

The Tk221 crore paid-up capital company posted earnings per share of Tk0.94 in the first half of the current fiscal year against Tk0.7 a year ago. 

On the other hand, the company is yet to utilise Tk12.54 crore from its Tk20 crore fund raised through the initial public offering in 2018. 

"We opened letter of credit to import machinery with this money. We took some time to match capacity growth with demand", said the company secretary.

Bangladesh / Top News / Stocks

Stock / dyeing / growth

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infographic: TBS
    FDI from US halves in January-June 2022
  • A woman reacts while embracing another person, near rubble following an earthquake in Hatay, Turkey, February 7, 2023. REUTERS/Umit Bektas
    Earthquake deaths cross 4,800 in Turkey, Syria; severe weather hampers rescue operations
  • Photo: TBS
    BNP to hold march programmes in Dhaka on 9 and 12 February

MOST VIEWED

  • Photo: Courtesy
    Sajida Foundation, Orange Corners sign agreement to support young Bangladeshi entrepreneurs
  • Photo: Courtesy
    Plan International BD join hands with GP to empower 4.5 lakh marginalised youth
  • FBCCI urges for boosting FTA, PTA
    FBCCI urges for boosting FTA, PTA
  • Idcol finances Joules Power’s 3.23MWp solar project in N'ganj
    Idcol finances Joules Power’s 3.23MWp solar project in N'ganj
  • Photo: PR
    Bangladesh Bank, Brac Bank organise awareness programme on FX clearing through RTGS
  • Banglalink deploys 4,000 new 4G sites as part of nationwide network expansion drive
    Banglalink deploys 4,000 new 4G sites as part of nationwide network expansion drive

Related News

  • China central bank to roll over lending tools to spur growth
  • Euro zone lending growth tumbles as higher rates bite
  • Paving the way towards growth and prosperity
  • Euro zone business activity back to growth in January -PMI
  • How the Bangladesh economy might fare in 2023

Features

Nimah designed by Compass Architects- Wooden tiles. Photo: Junaid Hasan Pranto

Trendy flooring designs to upgrade any space

4h | Habitat
Benefits of having high ceilings in your new home

Benefits of having high ceilings in your new home

3h | Habitat
Each Reverse Osmosi plant can produce approximately 8,000 litres of drinking water a day for around 250 families. Photo: Sadiqur Rahman

A drop in the ocean of persistent water crisis

5h | Panorama
Photo: Collected

Get your partner a lovely present this Valentine's Day

1d | Brands

More Videos from TBS

Challenging time waiting for RMG

Challenging time waiting for RMG

2h | TBS Round Table
"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

2h | TBS Graduates
10 cricketers who have played over 400 T20 matches

10 cricketers who have played over 400 T20 matches

2h | TBS SPORTS
Harry Kane sets two record in one goal

Harry Kane sets two record in one goal

2h | TBS SPORTS

Most Read

1
Photo: Courtesy
Panorama

From 'Made in Bangladesh' to 'Designed in Bangladesh'

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Master plan for futuristic Chattogram city in the making
Districts

Master plan for futuristic Chattogram city in the making

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

6
Photo: Collected
Crime

Prime Distribution MD Mamun arrested in fraud case

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]