Why loss-making Standard Ceramic has high-priced stock

Despite being a high-priced share of the stock market, Standard Ceramic Industries could not declare any dividend for its shareholders for 2021-22 fiscal year, which, according to industry experts, is an example of what rumours can do.

Each share of the company traded at Tk 147 today, which is much higher from many top-rated banks' stocks that are traded at below Tk 30.

The ceramic company incurred a loss of Tk 1.93 crore in 2021-22 financial year, so it declared no dividend for its shareholders.

Its earnings per share was Tk 2.99 in the negative last year, down from Tk 0.24 the previous year.

Last year, the ceramic company disbursed 1 per cent cash dividend.

Despite announcing the low amount of dividend last year, the company's share price was high mainly thanks to many rumours, according to stock market analysts.

It is easy for the manipulators to play with it, as the company has a low paid-up capital, they added.

Standard Ceramic Industries has a paid-up capital of Tk 64 lakh, according to the data of the Dhaka Stock Exchange.