Bashundhara Paper Mills shares surge despite heavy losses in H1
On 19 February, its shares closed at Tk27.60 on the DSE
Bashundhara Paper Mills, a concern of Bashundhara Group, has witnessed a sudden spike in its share price over six consecutive trading sessions, despite reporting heavy losses in the first half of the current fiscal year.
From 20 February to today (27 February), the company's share price surged nearly 50%, rising by over Tk13 per share to Tk41.50 at the Dhaka Stock Exchange (DSE).
In the last four sessions, its shares hit the upper circuit — the maximum price increase allowed in a single trading session — with a gain of around 10% per session.
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On 19 February, its shares closed at Tk27.60 on the DSE.
Following the unusual price surge, the DSE issued a notice to the company. In response, Bashundhara Paper Mills stated that there was no undisclosed price-sensitive information behind the hike or the increased trading volume.
The share price of the paper and paper products manufacturer was on the decline since August last year. On 2 February, the company's share price reached its lowest point in recent times – Tk26 per share, after which it gradually increased until the latest sudden spike.
This rally comes despite the company incurring heavy losses in the first half of FY25 — over Tk100 crore — resulting in a loss per share of Tk5.84, according to its unaudited financials.
Tk101cr loss in H1
Bashundhara Paper Mills, one of the major players in the paper industry and the leader in the tissue market, suffered a significant setback in H1, slipping into the red with a Tk101.48 crore loss.
Once a consistently profitable paper and tissue products maker, the paper mill has now found itself in hot water due to rising utility costs, higher raw material prices, and increased financial expenses from soaring interest rates, all of which contributed to lower sales.
According to its reports, during the July–December period of FY25, its production costs increased by around 8% due to rising gas and electricity prices, while finance costs for loans surged by 108% to Tk155.92 crore.
It owed Tk1,796.79 crore in long-term loans to several banks.
Meanwhile, its revenue fell by 40% to Tk410.47 crore in H1 compared to the same period of the previous fiscal year.
