Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Samuel S Chowdhury, one of the directors of Square Pharmaceuticals, on Thursday announced to purchase 2 million shares of the company at prevailing market price within April 30 this year.
Last week, Tapan Chowdhury, one of the directors of the company, also declared to buy 2 million shares within the next 30 working days.
Currently, Square Pharma’s stock price closed at Tk 217.30 each at the Dhaka Stock Exchange (DSE). The total value of 4 million shares will be Tk 869.2 million, if the current market is considered.
The directors are buying shares at a time when many well-performing stocks, including multinational ones, are enduring price erosion and not finding expected buyers.
Market experts see a good sign of the sponsor-director buying shares of their companies despite the market being under bear grip for a long time.
When directors or sponsors showed interest to buy shares of their company, it indicates that they have confidence in the prospect of their company, said a leading broker.
“Sponsors have better insights regarding their own companies, and a buy declaration from them can be taken as a signal of better future performance and/or current undervaluation,” said the stockbroker.
“We can take this as a positive signal, as the drug maker has been doing better despite economic challenges.”
Square Pharma, the leading drug maker, posted 6.43 per cent profit growth to Tk 10.23 billion in six months to December 2023, thanks to double-digit sales growth riding on dengue-related drug sales.
Square Pharma, the flagship company of Square Group, also registered 15 per cent year-on-year sales growth to Tk 36.97 billion through December 2023.
In December 2023, three directors of Square Pharma also purchased 3 million shares in total with a value of around Tk 625 million.
In 2022, four directors of the largest drug maker, Samuel S Chowdhury, Tapan Chowdhury, Anjan Chowdhury and Ratna Patra – also purchased 0.9 million shares in total.
Square Pharma is considered one of the best performing blue-chip stocks with an excellent reputation and keeps growing every year in both sales and profit, driven by local consumers’ and health practitioners’ faith in their products.
The company’s persistent financial strength, distinct strategic approach and the dedicated efforts of its employees played an important role in sustaining the profit growth even in the face of adverse impacts.
Square Pharma also made around Tk 19 billion profits in FY23, the highest annual profit in its history. Also, declared the highest-ever 105 per cent cash dividend.