DSE downgrades Golden Son to ‘Z’ category over dividend failure

Consequently, stockbrokers and merchant bankers have been instructed not to provide margin loans to investors for purchasing Golden Son shares.

The Dhaka Stock Exchange (DSE) has downgraded Golden Son Limited to the ‘Z’ category from the ‘B’ category, effective today, as the company failed to declare dividends for two consecutive fiscal years.

The regulatory demotion was executed in accordance with provision of the Bangladesh Securities and Exchange Commission (BSEC) Directive dated 20 May 2024.

Consequently, stockbrokers and merchant bankers have been instructed not to provide margin loans to investors for purchasing Golden Son shares, effective tomorrow (9 November).

Following the disclosure on the premier bourse yesterday, investor confidence took a sharp hit, driving the company’s share price down by 6.06% to close at Tk9.30.

The downgrade follows the engineering products manufacturer’s decision to skip dividend payouts for FY26 amid widening operational losses.

In its price-sensitive disclosure released after a board meeting on 5 November, Golden Son’s board of directors approved the audited financial statements for FY26 and recommended no dividend. The company has set 26 December for its annual general meeting (AGM) to seek shareholder approval, with 29 November fixed as the record date.

Golden Son reported a consolidated net loss per share (EPS) of Tk3 for the fiscal year ended 30 June 2026, compared to a loss of Tk1.83 in FY25. On a standalone basis, its loss per share expanded to Tk2.18 from Tk1.11 a year earlier. The company attributed the expanded loss to a significant drop in annual turnover.

Reflecting the financial strain, Golden Son’s consolidated net asset value (NAV) per share contracted to Tk13.07 as of 30 June 2026 from Tk16.06 in the previous year, while standalone NAV per share declined to Tk16.04 from Tk18.20.

However, consolidated net operating cash flow per share improved to Tk0.37 for FY26 from Tk0.28 in FY25, driven by optimised operational cash management.

Source: The Business Standard