Multinational companies' stocks struggle in 2025 as earnings slump and market gloom weigh on valuations
Most MNC stocks ended the year in negative territory, reflecting broader market stress and a sharp disconnect between fundamentals and valuations
Multinational companies (MNCs) listed on the Dhaka Stock Exchange (DSE) endured a difficult year in 2025, as weak investor sentiment, falling earnings, and subdued trading activity combined to drag down their share prices despite their traditionally defensive appeal.
Market data compiled by EBL Securities and BRAC EPL Stock Brokerage show that most MNC stocks ended the year in negative territory, reflecting broader market stress and a sharp disconnect between fundamentals and valuations.
Bata Shoe Bangladesh saw its share price fall by more than 11% during the year, even as it continued to offer an attractive dividend yield of nearly 5%. However, the company's earnings declined sharply by almost 48% in the January-September period, pushing its price-to-earnings ratio to an elevated level above 64, which dampened investor appetite.
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British American Tobacco Bangladesh suffered one of the steepest corrections among MNCs, with its share price plunging over 32% amid a 45.5% drop in earnings. Despite offering an 8.2% dividend yield, concerns over declining profitability and regulatory pressures weighed heavily on the stock.
Berger Paints Bangladesh and Grameenphone also struggled throughout the year. Berger's share price slid nearly 20% as earnings contracted by close to 38%, while Grameenphone lost more than 20% of its market value alongside a 23% decline in earnings. Although Grameenphone continued to provide a double-digit dividend yield, persistent revenue pressure and uncertainty over the telecom sector outlook kept investors cautious.
Cement producers Heidelberg Materials and LafargeHolcim Bangladesh posted mixed performances. Heidelberg's share price edged down marginally, but earnings dropped sharply by nearly 44%, while LafargeHolcim managed modest earnings growth of 7.4% despite a double-digit fall in its share price.
Linde Bangladesh recorded one of the most dramatic earnings declines, with profits plunging over 95%, resulting in a sharp fall in share price despite its exceptionally high dividend yield.
In contrast, Marico Bangladesh emerged as a rare outperformer among MNCs. Its share price rose more than 17% during 2025, supported by earnings growth of over 14% and a strong dividend yield.
Robi Axiata also stood out, delivering earnings growth exceeding 54%, though its share price remained largely flat, underscoring the market's reluctance to reward even strong earnings momentum.
Reckitt Benckiser and Unilever Consumer Care posted modest earnings growth, but their share prices declined, reflecting persistent risk aversion.
Market observers note that while MNCs continue to offer relatively stable dividends and strong corporate governance, falling earnings, high valuations in some cases and overall market pessimism limited their appeal in 2025.
The underperformance of MNC stocks mirrors the broader equity market, where weak liquidity, macroeconomic uncertainty and cautious investor behaviour overshadowed company-specific strengths throughout the year.
