July-September period: Pharma companies’ report higher EPS

Investors said they were increasingly tilting to the pharma sector as the sector’s growth is positive due to rapidly growing local market

 
Earnings Per Share (EPS) of pharmaceutical and chemical companies, listed on the Dhaka Stock Exchange (DSE) have posted robust growth in the first quarter of the current fiscal year, thanks to major market expansion both at home and abroad.

According to unaudited financial reports July-September’18, disclosed on the DSE website, 27 out of 31 companies have published their reports on earnings.

17 companies have registered positive growth in earnings.

According to the DSE website, ACI Formulation reported the highest growth in earnings, registering a 264% growth in the first quarter of fiscal year 2018-19,  compared to the same period last year.

During the same period, Wata Chemicals earned 202% higher, earnings of Advent Pharma saw 154% growth, and AFC Agro’s  earnings per share (EPS) posted only a 4% rise, the lowest among the positive performers.

Meanwhile, eight companies showed negative growth in earnings in the 1st Quarter (July-September 2018). Among the bad performers, ACI Limited has seen a 47% decline in earnings, the greatest fall, while Global Heavy Chemical registered a 4% negative growth.

Investors said they were increasingly tilting to the pharma sector as the sector’s growth is positive due to rapidly growing local market. They are hoping for better dividends next year from most of the pharmaceutical companies.

Abdul Muktadir, a share market investor told the Dhaka Tribune: “Income growth is only guaranteed if you invest in pharma sector stocks, as their EPS is much better than before.” 

Venting his frustration, Muktadir said the business of stocks  has turned out to be a curse for investors now, as only a few listed firms promise good dividends.

Out of 31 listed companies in the sector, 24 are listed in the ‘A’ category , meaning the companies regularly provide dividends to shareholders. The remaining seven listed firms fall under the B, N, and Z categories.
Source: https://www.dhakatribune.com

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