Mir Akhter Hossain Limited, the country’s sole construction company listed on the Dhaka and Chattogram bourses, currently has 33 projects worth Tk9,268 crore in its hands, according to the company’s annual report for the fiscal 2022-23.
Some of the notable projects currently underway include the Dhaka-Sylhet national highway, the development of Shah Amanat International Airport, the construction of a bridge over the Paira river, and numerous road projects across the country.
Despite a decline in the company’s business performance since its stock market listing in 2021, Mir Akhter looks to a promising future, thanks to its successful bids for so many government projects, according to market insiders.
The implementation of the Annual Development Program (ADP) has grown 9.21% year-on-year to Tk2.46 lakh crore in FY23. The approved budget allocated for the ADP for the FY24 is Tk2.63 lakh crore.
Mir Akhter’s FY23 annual report also mentions that the country was affected by a number of challenges including trade barriers, appreciation of dollar and high energy prices in addition to the Russia-Ukraine war.
The average annual inflation reached a ten-year high of 7.7% in 2022 and 9.7% in July 2023. The World Bank projects inflation to remain at this level in 2023 before easing to 7.7% in 2025, the report reads.
Sohela Hossain, chairperson of Mir Akhter, said in the annual report, “Amid these challenges, Mir Akhter was able to run the business with a certain level of efficiency and we worked to retain the company’s profitability. We undertook a number of precautionary measures to deal with the possible adverse impact on business.”
“We also reoriented our project management approach to better deal with the altered circumstances,” she added.
The company’s Managing Director Mir Nasir Hossain, said in the report, “Bangladesh, being a developing country, is in constant need of implementing infrastructural development projects. As a leading construction company, we are one of the major players of this sector.”
“The company was also able to maintain a positive operating cash flow indicating that its overall financial and liquidity position is still sound. We are always monitoring the market, industry partners and the overall economy for any future plans,” he added.
Mir Akhter got listed on the stock exchanges through issuing shares at Tk60 each under the book-building method of the initial public offering (IPO). General investors each got a 10% discount rate at Tk54 per share.
At the end of Wednesday’s trading session, its shares closed at Tk50.80 each at the Dhaka Stock Exchange (DSE). Its share price is far below the risky zone in terms of the price earnings ratio (P/E). Its P/E ratio is 15.35 based on the annual audited report, where over 40 P/E ratio is determined as risky.
But the company’s total liabilities stood at Tk1,440 crore as on 30 September 2023, which was 59% of the total assets and 238% higher than the shareholders equity. If the lending interest rate increases, the company will face difficulties to maintain the profit growth, said market insiders.