Taufika Foods and Lovello Ice-cream has been witnessing an unabated price hike over the last three and a half months.
Since the end of January, the share price jumped 236 per cent.
Meanwhile, the Dhaka Stock Exchange (DSE) on Sunday asked the company whether there was any undisclosed price sensitive information (PSI) behind the "unusual" rally.
In its reply, the company on Monday said there was no PSI behind the recent stock price rise and increase in volumes of shares transacted.
During the rally, the company made public its financial statements for October-December and January-March quarters of FY24. It experienced a year-on-year profit growth of 47 per cent and 73 per cent in the quarters.
Md. Ashequr Rahman, managing director of Midway Securities, expressed skepticism about the company's rally.
He said there was a rumour in the market that the company would see a rise in consumption of ice-cream following the heat wave.
"Perhaps, their sales rose but a stock price hike of above 200 per cent in a quarter is not rational."
The company's share price closed at Tk 29.80 per share on January 29. Later, it exhibited ups and downs.
It was observed that the company experienced a price surge in two to three trading sessions in a row.
Eventually, the stock jumped to Tk 100.30 per share by Sunday from Tk 29.80 per share on January 29.
However, the company on Monday was the third highest loser as its share price slid 3 per cent to Tk 97.30 per share on the DSE.
Source: The Financial Express