Apex Footwear stock shines on stellar business growth

Apex Footwear's stock was the most appreciated one last week, as it soared nearly 17% over the week, thanks to its stellar business performance in the July to December period of the ongoing 2022-23 fiscal year.

The stock's price crossed Tk300 per share after five months. Last Thursday, it stood at Tk306.

And owing to this increase in share price, Apex Footwear's market capitalisation surged by 9.44% to Tk394 crore in just five days.

Market capitalisation is calculated by multiplying a stock's market price per share by the number of common shares outstanding.

Earlier this month, the company published its financials, according to which, both its revenue and profit increased 42% in the first half of the ongoing fiscal, compared to the same period of the previous year.

In the July to December period of 2022, the company's revenue stood at Tk801 crore, and net profit at Tk6.77 crore.

Despite the inflationary pressure, Apex Footwear performed well in both local and foreign markets.

According to analysts, the company's management took several initiatives to tame the inflation pressure and hence, was able to attract more investors. As a result, investors ended up earning the highest return from Apex Footwear shares.

Meanwhile, institutional investors also increased their holdings in the company by 2 percentage points.

Earlier, Dilip Kajuri, deputy managing director and chief financial officer of Apex Footwear, told The Business Standard, "We made 16.02% more profit from our exports because of the high value of the dollar."

"Also, sales volume in the local market went up because of our discounts on shoes," he added.

The company said in its financial report filed on the Dhaka Stock Exchange (DSE) that its profit has increased as exports and local sales surged to a good extent even after an increase in most of the expenses including TDS (tax deducted at source) on export proceeds.