Sharp Industries' share price in sharp fall
The unusual price movement has come at a time when the textile spinning company is facing significant operational challenges, particularly shortages of electricity.
Shares of Sharp Industries PLC have plunged 56% in 16 trading sessions on the Dhaka Stock Exchange (DSE), following a sharp rally that prompted the Bangladesh Securities and Exchange Commission (BSEC) to order an investigation into the company's abnormal share price movement and trading activities.
According to DSE data, the share price fell from Tk44.10 on 12 August to Tk19.50 today(6 September), losing Tk24.60, or nearly 56%, in 16 trading sessions.
The decline came after the stock had more than doubled in value in less than two months. On 15 June, the share was trading at around Tk17. It subsequently surged to Tk44.10 on 12 August, gaining Tk27.10, or around 156%, in nearly eight weeks.
Following the unusual rise in the share price and trading volume, the BSEC instructed the DSE to investigate the company's trading activities. Earlier, the DSE had sought an explanation from Sharp Industries regarding the abnormal movement.
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The company informed the DSE that it had no undisclosed price-sensitive information that could explain the unusual movement in its share price.
The DSE investigation is expected to examine the trading pattern of the company's shares and determine whether there was any market manipulation, unusual or coordinated trading, misuse of inside information or violation of securities laws and regulations.
The sharp fall has now erased a significant portion of the gains recorded during the stock's rapid rally. The share price is currently more than 55% below its 12 August peak.
The unusual price movement has come at a time when the textile spinning company is facing significant operational challenges, particularly shortages of electricity.
Power shortages have reduced the company's production by around 40%, according to company information. Sharp Industries has production capacity of around 70 tonnes of yarn per day, but its current output has fallen to about 42 tonnes.
The company operates around 1,20,000 spindles. The production disruption has also put pressure on its financial performance.
During the first nine months of fiscal year 2025-26, the company reported revenue of around Tk257 crore but incurred a net loss of Tk65 crore. Its loss per share stood at Tk2.16, while net asset value per share was Tk7.92 as of March 2026.
In the January-March quarter, the company generated around Tk56 crore in revenue and incurred a loss of approximately Tk21 crore. Its accumulated losses stood at around Tk78 crore at the end of March.
Despite the financial pressure, the company sees several factors that could support its business recovery.
According to the company, it has confirmed orders for six months, while yarn prices have increased. Higher export incentives and reduced pressure from India's anti-dumping measures are also expected to support the business.
The company expects that an improvement in electricity supply would allow it to increase production, utilise more of its existing capacity and fulfil its confirmed orders. It also sees an opportunity to secure additional orders as production disruptions at competing factories constrain market supply.
