Rising 105% in a 24-day span, Rahima Food temporarily halts operations at its cashew nut factory
Rahima Food Corporation Halts Cashew Nut Production Amidst Surge in Share Price
Rahima Food Corporation Limited, a leading player in the food processing industry, has suspended its cashew nut processing plant due to a large stockpile of cashews, as announced on August 12, 2025. The decision was made by the company's Board of Directors and the plant is expected to remain closed until further notice.
This temporary halt in production comes after the company's share price experienced a significant increase. In the 24 days leading up to the suspension announcement, the share price jumped by an impressive 105%. Despite the halt in production operations, the share price has continued to surge, indicating strong market interest or speculative activity. However, the company has denied any undisclosed information behind the substantial share price increase.
The cashew nut processing plant suspension is not the first time Rahima Food has faced production challenges. On July 7, 2025, the company also suspended its coconut oil plant for three trading sessions.
The company's financial performance over the past year has been mixed. Despite a decline in net profit by 69% to Tk51 lakh, with an earnings per share (EPS) of Tk0.26, Rahima Food managed to pay a 10% cash dividend to its shareholders in FY24. However, in the first-nine months of FY25, the company's revenue declined by 48% to Tk8.72 crore.
The trading value of Rahima Food's shares on August 13, 2025, was Tk15.67 crore at the Dhaka Stock Exchange (DSE). The company has a 62.62% free float and a price-to-earnings (P/E) ratio of 443 as of August 13, 2025.
The Dhaka Stock Exchange (DSE) has served four query notices to Rahima Food regarding the price hikes. The company has responded, stating that there is no undisclosed price-sensitive information regarding the recent price hike and trading volume. However, when contacted, the company secretary, Md Zakir Hossain, did not respond.
The surge in Rahima Food's share price, despite a decrease in revenue and profit in the first-nine months of FY25, has been a notable disconnect between operational suspension and stock market performance. This could be driven by prior investor optimism or stock speculation.
Rahima Food's revenue comes from three segments: sales of cashew nuts, coconut oil, and by-products of cashew nuts. The disclosure from Rahima Food did not mention the reason for suspending production.
Over the last three months, Rahima Food's shares have surged around 150%, rising to Tk168.90 per share on August 11, 2025, from Tk67.56 on May 14, 2025. However, on August 13, 2025, the share price declined by 7.79%, or Tk13 per share, to Tk153.80.
As Rahima Food navigates this challenging period, investors and stakeholders will be closely watching the company's progress and any updates regarding the cashew nut processing plant and its overall financial performance.
- Amidst the surge in Rahima Food Corporation's share price, which has seen a notable increase of 105% in the 24 days leading to the cashew nut processing plant shutdown, there appears to be significant interest or speculative activity within the finance and business sectors.
- Despite the suspension of its cashew nut processing plant and a decline in net profit by 69%, Rahima Food Corporation Limited, a player in the food processing industry, is demonstrating resilience in the finance sector, as shown by its ability to pay a 10% cash dividend to shareholders in FY24.
