Ex-minister Zahid Maleque's BD Thai Food shares skyrocket

Shares of BD Thai Food and Beverage Limited, a company owned by the family of former health minister Zahid Maleque, continued their sharp ascent today (4 December) despite the firm's deteriorating financial health and the absence of any disclosed corporate developments behind the rally.

The stock jumped by 9.87% to close at Tk16.70 on the Dhaka Stock Exchange (DSE), extending a steep rise that began on 13 November. Over the last 15 trading sessions, the share price has soared by 88%, climbing from Tk8.9.

After the unusual surge drew a query from the DSE, the company stated that it had no undisclosed, price-sensitive information that could explain the movement. Nevertheless, the stock continues to attract aggressive trading interest, even as its fundamentals paint a bleak picture.

Former minister Zahid Maleque is a sponsor shareholder of BD Thai Food, holding 11.41% of its shares. His sister, Rubina Hamid, serves as the company's chairman, while his son, Rahat Maleque, is a director. The family established the company in 2010, and it entered the capital market in 2022 through an IPO of 1.5 crore shares at a face value of Tk10 each.

Financial disclosures show the company is in severe distress. In the July-September quarter of the 2023-24 fiscal year, BD Thai Food reported a loss of Tk4 crore, translating to a loss per share of Tk0.49. 

For the full FY25, its losses deepened to Tk13.40 crore, while revenue plunged by 72% to Tk16.91 crore.

Facing mounting losses, the board decided not to recommend any dividend for the last fiscal year.

Auditor Fames and R issued a stark warning in the FY25 audit report, noting that the company faces a "going concern" threat due to its hefty loans, declining revenues, rising liabilities, stagnant inventories, and uncertainty over the realisation of receivables and advances. 

As of FY25, BD Thai Food carries Tk48 crore in term loans and Tk81.23 crore in short-term borrowing, with Agrani Bank identified as its major lender.

BD Thai Aluminium, another listed company owned by the Maleque family, has also seen dramatic price action in recent weeks. From 13 November to 3 December, its share price surged by 53% to Tk13.50, before slipping by 4.45% to Tk12.90 today.

In December 2023, Zahid Maleque and his family divested their entire stake in Sunlife Insurance Company Limited, selling it to Green Delta Insurance.