Written by The Banking Post
Shares of Dominage Steel Building Systems have surged 120 per cent in five months, even as the company posts losses, carries a negative price-to-earnings ratio and keeps one factory unit shut.
The stock climbed from Tk 16.70 on September 22 last year to Tk 36.70 on February 24, defying its deteriorating financials and operational setbacks.
The company reported losses in the first and second quarters of FY26. For October–December 2025, it posted a loss of Tk 0.07 per share, widening from a loss of Tk 0.02 in the previous quarter.
Its trailing P/E ratio—based on the last 12 months’ earnings—stood at negative 282.31 on Monday, according to the Dhaka Stock Exchange (DSE). A negative P/E typically reflects losses and signals elevated financial risk or instability.
The company’s auditor also flagged multiple issues in FY25 accounts under a “matter of emphasis”. These included failure to properly deduct tax deducted at source (TDS) and value-added tax deducted at source (VDS), and long-pending adjustments of advance income tax (AIT).
Dominage Steel was unable to provide time-based trade receivables, preventing verification of ageing analysis and recoverability. The auditor also noted that some purchases and payments were made outside banking channels.
Operational concerns add to the red flags. A DSE inspection team visited the company’s units in Ashulia, Savar and Polash, Narsingdi in early November. While the Ashulia unit was found operational, the Polash factory remained shut.
Following the inspection, the DSE repeatedly updated investors on the company’s status through its website. Despite that, the rally continued.
Earnings have weakened steadily over the years. Net profit fell from Tk 106 million in FY21 to Tk 56 million in FY22, then plunged to Tk 4.58 million in FY23 and Tk 2.83 million in FY24. Profit edged up slightly to Tk 5.10 million in FY25 before the company slipped back into losses in FY26.
Dividend payouts have also been minimal. The company distributed cash dividends between 0.25 per cent and 0.5 per cent from FY22 to FY25, with 2 per cent paid in each of the two preceding years—just enough to retain its ‘B’ category status on the bourses.
Despite mounting financial and operational concerns, investor appetite has pushed the stock sharply higher, raising questions about the sustainability of the rally.
