Written by The Banking Post
Kay & Que (Bangladesh) has seen its share price soar 42% in just one month, climbing from Tk248.5 to Tk352.1 as of 21 August, despite having no fresh disclosures to justify the rally.
Over the past three months, the engineering firm’s stock has surged 84% or Tk161 per share. The Dhaka Stock Exchange (DSE) issued a query in late July, but the company replied that it had no undisclosed price-sensitive information behind the unusual rise in both price and volume.
Financials, however, tell a mixed story. In the first nine months of FY25, Kay & Que’s revenue slipped to Tk16.23 crore from Tk18.85 crore a year earlier. Profit, meanwhile, rose to Tk2.53 crore with earnings per share (EPS) of Tk3.69, compared with Tk1.67 crore and EPS of Tk2.45 in the same period last year. Its price-to-earnings (P/E) ratio now stands at a lofty 71.57, raising eyebrows among analysts.
In FY24, the company posted a modest profit of Tk45 lakh with EPS of Tk0.67, distributing a 3% cash and 2% stock dividend.
Once a key supplier of carbon rods for dry cell batteries, Kay & Que was forced to shut down its rod, coal tar, and pesticide operations over the years due to declining demand and operational hurdles. Today, it operates through a CNG refuelling station, a boulder business, and factory land leases. In 2023, it merged with MultiSourcing Limited, an IT firm, to diversify its revenue streams.
The company, established in 1983 and listed on the DSE in 1996, has 69.93 lakh shares, of which 45.29 lakh are free-float. Sponsor-directors hold 35.24% of shares, institutions 15.29%, and general investors 49.47%.
Analysts warn that the latest price rally appears speculative rather than fundamentals-driven. “A P/E ratio above 70 is a clear red flag. Investors should be cautious when valuations move far beyond earnings capacity,” said one market observer.
