Safko Spinning shares soar 113% in one month

The share price of Safko Spinning Mills, which manufactures Cotton and Polyester textile yarn, has soared 113% in just one month.

The share price rose to Tk24.9 each on 17 June, from Tk11.7  one month ago.

According to the data available with the Dhaka Stock Exchange (DSE), the share price increased 77% in nine trading days between 6 June and 17 June.

Replying to a DSE query about the unusual price hike, the company said there was no undisclosed price-sensitive information behind the increase in price and volumes of trading shares.

As per information of the company, it incurred losses for the last two consecutive fiscal years.

In fiscal 2019-2020, Safko Spinning Mills incurred a loss of Tk17.05 crore, while the amount was Tk1.45 crore in the previous fiscal year.

In the first nine months of fiscal 2020-2021, it incurred a loss of Tk12.91 crore, and its loss per share (EPS) stood at Tk4.31.

The loss was Tk11.52 crore and loss per share stood at Tk3.85 at the same time of the previous fiscal year.

According to its financial statements, in the July-March period, its revenue stood at Tk32.61 crore, which was Tk32.10 crore in the same period of the previous fiscal year.

In the January-March quarter, the revenue stood at Tk18.67 crore, which was Tk5.34 crore in the same period of the previous fiscal year.

In this period, the company has returned to profit from losses compared to the previous year.

In the three months till March, the company posted a profit of Tk13.13 lakh against a loss of Tk5.55 crore in the same period of the previous year.

Safko Spinning Mills, which went into commercial production in 1997, got listed on stock exchanges in 2000.

As it had incurred losses, the company did not pay dividends for its shareholders for the 2018-2019 and 2019-2020 fiscal years.