Square Pharma's market cap crosses Tk20,000cr after nine months

Square Pharmaceuticals PLC, the country's leading drug manufacturer, has seen its market capitalisation exceed the Tk20,000 crore mark after a gap of nine months, driven by a recent rally in its share price.

According to the Dhaka Stock Exchange (DSE), the company's share price has surged 11% since early July, reaching Tk229.80. As a result, Square Pharma's market cap rose by Tk1,959 crore to Tk20,370 crore, making it the second-highest valued firm on the DSE.

The company last hit this milestone on 8 August 2023, when its market cap peaked at Tk20,973 crore, before gradually declining below the Tk20,000 crore level by 9 October.

Grameenphone remains the top company by market capitalisation at Tk42,224 crore, contributing 11.59% to the DSE's total market cap. In comparison, Square Pharma accounts for 5.59%.

Analysts attribute Square Pharma's appeal to its strong fundamentals. The company has consistently posted double-digit growth in both revenue and profit, while maintaining a track record of over 100% cash dividends for the past three years.

Despite its performance, the stock has remained undervalued, with a price-to-earnings (P/E) ratio of 8.15 based on unaudited financials and 9.73 based on audited results – both below the DSE's average P/E of 10.51.

This valuation gap has attracted investors looking to capitalise on the upside potential, analysts say.

As per Square Pharma's latest shareholding disclosure (June 2025), sponsors and directors hold 43.59%, institutional investors 14.05%, foreign investors 15.14%, and the general public 27.22% of the company's shares.

In the first nine months of FY25, its revenue stood at Tk5,784.64 crore, marking 11% year-on-year growth.

Market insiders say that during a challenging economic period marked by high inflation, the spread of diseases proved to be an advantage for drugmakers, as people were compelled to purchase medicines.

However, Square Pharma could not shield itself from the impact of inflation, which led it to face a significant increase in expenditures for the purchase of raw materials, according to the company's financial statement.

In July-March of FY25, its profit grew by 16% year-on-year to reach Tk1,874.80 crore. At the end of March, its earnings per share stood at Tk21.15, compared to Tk18.24 a year ago.

For the January-March quarter, the company reported a revenue of Tk2,012.87 crore and a net profit of Tk605 crore, marking a 22% and 23% year-on-year increase, respectively.