Rahima Food denies hiding any private details in connection to their stock's 138% price increase
Rahima Food Corporation's share price has soared dramatically in recent weeks, defying financial risks and operational challenges. The company's stock has experienced a surge of over 100% in about a month and nearly 150% in three months, despite the suspension of its cashew nut and coconut oil production plants.
Despite the price jump, Rahima Food Corporation has clarified that there is no undisclosed or inside information behind this share price increase. The company, which is part of City Group, has publicly stated that there is no insider information or financial announcement that explains the price rise, suggesting the surge is driven by market sentiment rather than fundamentals.
The strong speculative interest and buying pressure in Rahima Food's shares have lifted prices substantially within a short period. The Dhaka Stock Exchange has seen gains recently, with Rahima Food Corporation topping the gainers' list on certain days, further fueling investor enthusiasm.
The operational suspensions have not deterred investors, with the share price remaining buoyant. It appears that investor focus may be more on speculative trading or positive outlooks for future recovery rather than current operational performance.
Safko Spinning, another company under scrutiny, has not paid dividends for two years and reported a Tk38.89 crore loss in FY24, its second consecutive year in the red. Despite these financial struggles, Safko Spinning's shares have also seen a rise of 65% between 22 June and 7 August, even with its factory remaining closed.
The Dhaka Stock Exchange has issued a query to Safko Spinning due to its share price increase, and the company has confirmed the shutdown of its factory during a DSE inspection team visit on 3 February. Safko Spinning has extended its production halt until 16 August 2025 due to adverse textile market conditions and high raw material costs.
Analysts have cautioned that both Rahima Food's and Safko Spinning's stocks are trading in a highly risky zone. The surge in Rahima Food's share price appears speculative or sentiment-driven rather than based on disclosed financial improvements or information. Given the ongoing operational halts, investors should be cautious about the associated risks.
Rahima Food's earnings from cashew sales for the first nine months of FY25 were over Tk5 crore, compared to Tk19 lakh from coconut oil. This indicates that cashew nut processing remains the core business for Rahima Food, with coconut oil contributing only marginally to its revenue.
[1] The Financial Express, "Rahima Food's share price surges despite operational halts and financial risks," 10 August 2025. [2] Dhaka Tribune, "Rahima Food denies undisclosed information behind share price jump," 11 August 2025. [3] Bangladesh Today, "Rahima Food: No inside information behind share price surge," 12 August 2025. [4] The Business Standard, "Safko Spinning's share price surges despite factory closure," 25 July 2025. [5] The Daily Star, "Dhaka Stock Exchange gains continue as Rahima Food tops gainers' list," 2 August 2025.
[1] The surge in Rahima Food's share price seems to be driven by speculative investing and market sentiment within the business and stock-market arena, rather than disclosed financial improvements or information.
[2] Despite Safko Spinning's financial struggles and factory closure, its shares have also seen a significant rise, indicating that investors might be focusing more on speculative trading or positive outlooks for future recovery rather than current operational performance.
