Himadri Ltd to expand cold storage capacity with Tk5.63cr investment

Himadri Limited, a concern of the Ejab Group, has planned to invest around Tk5.63 crore to expand its cold storage capacity by adding a new chamber at its Joypurhat unit, according to a stock exchange filing on Wednesday (25 June).

The firm, listed on the SME board of both the Dhaka and Chittagong stock exchanges, expects the expansion to boost its rental income by approximately Tk1.82 crore in the 2025–26 fiscal year.

The construction work of capacity expansion will begin on 29 June, stated the disclosure, which will increase capacity tentatively by 54,000 bags.

However, following the unveiling of the investment plan today, its share price dropped by 10%, or Tk180, to Tk1,620 each.

According to Dhaka Stock Exchange (DSE) data, Himadri is the highest-valued share on the SME board. Share price data shows that over the past 52 weeks, its shares have traded in a range of Tk897.70 to Tk2,498 each.

Himadri Ltd is currently providing modern cold storage facilities to its customers in six different places in northern Bangladesh.

The company plays a vital role in the agricultural supply chain of the whole country, primarily focusing on the storage of table potatoes and seed potatoes, according to its website.

Its first nine months' financials during the July to March period, its earnings per share (EPS) declined by 2.58% to Tk9.81.

In the third quarter (January to March), the company incurred a loss of Tk14.35 per share, compared to a loss of Tk16.76 per share during the same period of the previous fiscal year.

In FY2023–24, the company reported a 95% increase in rental income over the previous year, driven by higher rates for potato preservation in its cold storage facility. 

It posted a profit of Tk89.86 lakh in FY24, with earnings per share (EPS) of Tk3.42, up significantly from Tk57.18 lakh in FY23 and an EPS of Tk2.13.

The company paid a 5% cash dividend to its shareholders.