Samuel S Chowdhury, a director of Square Pharmaceuticals, announced on Thursday plans to acquire 2 million shares of the company at the current market price by April 30 this year.
Additionally, Tapan Chowdhury, another director of the company, declared last week his intention to purchase 2 million shares within the next 30 working days.
At present, Square Pharma’s stock price closed at Tk 217.30 each at the Dhaka Stock Exchange (DSE), valuing the total 4 million shares at Tk 869.2 million based on current market rates.
This move by the directors comes amidst a period where several well-performing stocks, including multinational corporations, are witnessing price declines without anticipated buyers.
Market experts perceive the directors’ interest in buying shares of their companies as a positive sign, especially amid a bearish market trend.
According to a prominent broker, the decision of sponsors or directors to buy shares reflects their confidence in their company’s future prospects. Such declarations are often interpreted as indicators of potential growth or current undervaluation.
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Despite economic challenges, Square Pharma, a leading pharmaceutical company, recorded a 6.43% increase in profits, reaching Tk 10.23 billion in the six months leading to December 2023, largely attributed to robust sales, particularly of dengue-related drugs.
Square Pharma, a flagship entity of Square Group, achieved a 15% year-on-year sales growth, amounting to Tk 36.97 billion by December 2023.
In December 2023, three directors of Square Pharma collectively acquired 3 million shares worth approximately Tk 625 million.
Moreover, in 2022, four directors, including Samuel S Chowdhury, Tapan Chowdhury, Anjan Chowdhury, and Ratna Patra, purchased a total of 0.9 million shares.
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Square Pharma is recognized as one of the top-performing blue-chip stocks, consistently expanding its sales and profits, bolstered by the trust of local consumers and healthcare professionals in its products.
The company’s resilience in maintaining profit growth despite adverse circumstances can be attributed to its financial stability, strategic initiatives, and the dedicated efforts of its workforce.
In fiscal year 2023, Square Pharma generated profits of around Tk 19 billion, marking its highest annual profit to date, and declared a record-high cash dividend of 105%.
