AFC Agro’s share price is rising despite the risk

Sharebarta24.com: The share price of AFC Agro, a listed pharmaceutical and chemical company, is rising at an abnormal rate, leaving good companies behind despite the risk of investing. AFC Agro Biotech Limited declared no dividend for the fiscal year ended June 30, 2020. Deprived of dividends, Karsaji played a game with the company. The company’s share price has almost doubled in the last one year.

And a big syndicate of the market including the officials of the company itself is involved in this manipulation. This syndicate has been manipulating the shares of many companies before. Karsaji recently formed an investigation committee against two insurance companies. This time, AFC Agro has come up with a new strategy.

Besides, the company is depriving investors of dividends even though it has made a profit in the last financial year. As a result, investors have demanded an examination of the company’s income and expenditure and transaction figures. In the last financial year, the company earned Tk 0.32 per share. The previous year’s earnings per share was 2.93.

Market analysis showed that the company’s share price was 17.40 paise on June 26. Shares of the company traded at 24.90 paise on Thursday, just a few days apart. But the company is very weak element. All in all, the company is at the highest risk for investment.

It is learned that on Thursday, the price of each share of the company increased by Tk 2.10 or 9.21 percent to Tk 24.90, which is the highest in the last one year. Analysts believe that the share price of 12 paise EPS company is 24.90 paise abnormal. It is also doubtful whether the company will be able to pay dividends in the current financial year.

Of the 11 crore 52 lakh 18 thousand 200 shares of the company, the directors have only 30.29 percent. Institutional investors also hold 36.10 per cent and general investors 31.60 per cent. At present the company is not in production. Even though the company is not in production, the well-known directors of the company are earning by fluctuating the share price.

The authorized and paid up capital of the ‘A’ category company, which was listed on the capital market in 2014, is Tk 300 crore and Tk 115.21 crore, respectively. At present the reserve of the company is 9 crore 44 lakh taka. The company has been filing a series of stock dividends since 2013. Although the managers are benefiting from this, the shareholders are suffering. The stock has paid dividends since 2013.

According to market insiders, the rise in share prices of such weak and risky companies, leaving good companies behind, has not led to lasting stability in the market. The regulatory body should monitor the share transactions of such companies. Who is investing in shares of such risky companies. Companies as well as those who are investing in these stocks should not only protest because of the increase in prices but also because of the price hike. Otherwise, the market will lose its stability due to weak companies.


Source: Share Barta 24 by www.sharebarta24.com.

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