The Relationship among P/E

Ratio, stock Return and

Dividend yield for 10 listed
company in Dhaka stock
Exchange
 DEPARTMENT OF BANKING & INSURANCE
UNIVERSITY OF DHAKA
Course name- “Investment and Merchandise Banking”
Course code: B-405
Submitted to
Afrin sultana
Assistant /Professor, Department of Banking and Insurance, University of Dhaka
Submitted By Group D
Name ID
Most. Homiyra Jaman Busra 25-016
Md. Hasibul Hassan 25-020
Rehnuma Marzan 25-024
Md. Akram Khan 25-106
Akash Karmokar 25-008
Sajid Ahmed Anik 25-130

Submission date: 11 March 12, 2023

 Letter Of Transmittal

11 March 12, 2023

Afrin sultana
Assistant Professor, Department of Banking and Insurance, University of Dhaka
Subject: Submission of report

Madam
It is a great honor for us to present our report on " The Relationship among P/E Ratio, stock Return
and Dividend yield for 10 listed company in Dhaka stock Exchange". We feel delighted as we
have gotten the opportunity to prepare our report on obeying your instruction. We have given our
dedication and concentration to preparing the report. We are thankful for your guidelines and
supervision of this report.
We tried to give our best effort in the preparation of the term paper. Yet, if any shortcomings arise,
we hope you will consider that.

Sincerely,
Md. Akram Khan
On Behalf of Group-D
Department of Banking and Insurance
University of Dhaka
 Executive summary
Orion farma, Reckitt Benckiser, marico Bangladesh, jamuna oil company, Bangladesh shipping
company, Sea pearl cox’s bazar, Eastern housing, AND telecom, Bashundhara paper mills, monno
Agro and digital machinery are the major company of Dhaka stock exchange (DSE). These
companies are listed by Bangladesh securities and exchange commission (BSEC). Some of these
company are ruled in pharmaceutical industry, some of them makes brand value in oil and shipping
industry/. All of these company are ruled on their own industry and makes brand value in their
sector. Because of high reputation these company has very strong position in stock market. These
company has high market share and high growth. These company’s dividend yield P/E ratio, Stock
return of these company indicates its shares market value and growth. Orion farma, Reckitt
Benckiser, marico Bangladesh, jamuna oil company, Bangladesh shipping company, Sea pearl
cox’s bazar, Eastern housing, AND telecom, Bashundhara paper mills, monno Agro and digital
machinery are very high P/E ratio and dividend. That means these company are very potential
market growth in future. A lot of companies doing business in this stock market with higher
reputation and makes chance for investor for make invest and earn profit. Besides this because of
DSE is a weak stock market a lot of fraud company is also listed here which can make trouble for
the investors. So a investor should careful before making any investment in the stock market. So
before investing in the market a investor has to look too many indicators like P/E ratios ,dividend
yield type measuments. If the company’s ratio is good investor can invest without any fear of
losses.
 Table of Contents
Introduction: .................................................................................................................................... 1
Overview of the company ............................................................................................................... 2
Ratios of the Companies ................................................................................................................. 5
Interpretations and findings .......................................................................................................... 18
Conclusion: ................................................................................................................................... 20
References ..................................................................................................................................... 21
Introduction
There are two stock exchange in Bangladesh. (1) Dhaka stock exchange and (2) Chittagong stock
exchange). Dse is the big and main stock exchange of Bangladesh. A lot of companies is listed
here.Orion farma, Reckitt Benckiser, marico Bangladesh, jamuna oil company, Bangladesh
shipping company, Sea pearl cox’s bazar, Eastern housing, AND telecom, Bashundhara paper
mills, monno Agro and digital machinery are the major company of Dhaka stock exchange (DSE).
These companies are listed by Bangladesh securities and exchange commission (BSEC). Some of
these company are ruled in pharmaceutical industry, some of them makes brand value in oil and
shipping industry. All of these company are ruled on their own industry and makes brand value in
their sector. Because of high reputation these company has very strong position in stock market.
These company has high market share and high growth. These company’s dividend yield P/E
ratio, Stock return of these company indicates its shares market value and growth. Orion farma,
Reckitt Benckiser, marico Bangladesh, jamuna oil company, Bangladesh shipping company, Sea
pearl cox’s bazar, Eastern housing, AND telecom, Bashundhara paper mills, monno Agro and
digital machinery are very high P/E ratio and dividend. That means these company are very
potential market growth in future.
P/E ratio, dividend yield measurment and stock return indicates the share value of the company.
That ratios helps a investor to identify whether the stock is overvalued or undervalued or market
valued. These ratios helps a investor to take decision to make investment of not. So these are very
much necessary for a investor perfectly to make investment in a stock.

1
Overview of the company

Orion Pharma:
Orion Pharma Ltd. is one of the premier pharmaceutical companies of Bangladesh which has been
contributing to improving the human health care of the country by providing quality branded-
generic pharmaceuticals. We, at Orion Pharma Ltd., always believe in 'Quality never ends' and
refuse to settle for anything until it exceeds the existing standard. For this, Orion Pharma Ltd. has
been superseding the market growth consistently by wide margin in last few years. The company
has been awarded with the ISO-9001: 2000 Certificate in January 2003 for serving its valued
customers with products of excellent quality.Having four decades of vast experience imbibed with
technical and professional expertise, now Orion Pharma Ltd.
Reckitt Benckiser (Bd) Limited;
Reckitt Benckiser (Bd) Limited or RB Bangladesh is engaged in manufacturing and marketing of
household and toiletries, pharmaceuticals and other home products. It was established in 1961 and
is headquartered in Dhaka
Marico:
Marico Bangladesh Ltd. engages in the manufacturing and marketing of consumer products. Its
brands include Parachute, Nihar, Saffola, Hair Code, Livon, Parachute Advanced, Beliphool,
Ayurvedic Gold, Extra Care, Parachute Body Lotion, Set-Wet, and Bio Oil in Bangladesh. The
company was founded on September 6, 1999 and is headquartered in Dhaka, Bangladesh.
Jamuna Oil Company
Jamuna Oil Company Ltd is a subsidiary of the Bangladesh Petroleum Corporation that nationally
markets octane, petrol, diesel, kerosene, furnace oil, bitumen and lubricants in Bangladesh. In
1975, it was renamed Jamuna Oil Company after the river Jamuna. It is headquartered in
Chittagong, Bangladesh.
Bangladesh Shipping Corporation
Bangladesh Shipping Corporation is a state-owned, autonomous corporation in Bangladesh. It
owns a number of ships and oil tankers, and also charters sea-going vessels from other operators.
The vessels are used to carry ready-made garments and other export items, and also to import crude
oil from Saudi Arabia and UAE
Delta Life

December 17, 1986. The journey of Delta Life Insurance Company began. Since then, it is only a
forward march. The company emerged under the prudent leadership of its founder Chairman and
Managing Director Late Shafat Ahmed Chowdhuri, Actuary, as the government permitted the
operation of insurance business in private sector in the mid 1980s.
The avowed mission of the company was to bring the advantages of insurance to the home of the
masses and to establish it as a safe and lucrative means of investment. In line with the above, Delta
Life started its activities and has been able to obtain trust and confidence of hundreds and
thousands of people.

Delta Life extended its operation through a combination of traditional and innovative life policies.
Apart from Ordinary Life, Group and Health Insurance, Gono Grameen Bima is an immensely
popular scheme among rural folk. This is to be noted that Delta Life introduced micro insurance
scheme for the first time in Bangladesh; while its operation has set an example of its kind. Gono
Grameen Bima is highly admired both at home and abroad and has opened a new vista in the realm
of life insurance. Also, it has played a crucial role in popularizing insurance in Bangladesh.

Delta Life provides different types of insurance services through its array of products catering to
the need of people belonging to different strata of the society. Our services provide traditional
insurance coverage along with savings: Ordinary Life, Gono-Grameen Bima, Group & Health
Insurance.Delta Life is conducting its operation through 1000 plus offices across the country;
while around 20,000 field forces are taking the service at the door step of the mass people.

Eastern Housing Limited

Eastern Housing Limited is a public limited company in Bangladesh working in real estate
development. The registered office of the company is situated in Bangladesh. EHL is one of the
29 members of the REHAB Association, the central body for private sector developers in
Bangladesh.

ADN Telecom Ltd,

ADN Telecom Ltd, the leading ISP, MPLS, IPLC, and IP Telephony service provider in
Bangladesh, initiated its glorious journey back in 2003. It is one of the major sister concerns of
“ADN Group” along with ADN Technologies Ltd, Tech Valley Networks Ltd (TVNL), InGen
Technologies Ltd, and ADN EduServices Ltd.

ADN Telecom was launched as a Private Limited Company and designated as the ‘Advanced Data
Networks System Ltd.’ till 2012. From 2013, ADN Telecom Ltd. is marching ahead with glory
with the current title. Besides offering the service as mentioned earlier, ADN Telecom covers other
IT services like Data and Voice to Local and International clients to the countywide range.

ADN owns a diverse access network across the whole country through Wireless, Fiber, and
Satellite Infrastructure. ‘Simplifying Connectivity’ has been the core competence of ADN
Telecom. On that very note, ADN Telecom Ltd. is living up to this motto converging technologies
with human excellence.
Bangladesh Telecommunication Regulatory Commission (BTRC) has awarded ADN numerous
esteem licenses, and permissions as the Nationwide Internet Service Provider, Nationwide IP
Telephony Service Provider, VSAT Provider with Hub and International MPLS Services are to
name a few.

BTRC has assigned several radio frequencies in different bands in favor of ADN Telecom for its
access and transmission networks that have strengthened the company to deploy latest wireless
technologies, like as fixed WiMAX.

As the leading telecom operators in the region, ADN Telecom has some of the most heavyweight
strategic partners such as SingTel, Tata Communications, and Orange Business Service. Along
with them, ADN Telecom also has a diplomatic alliance with British Telecom, Bharti Airtel, Sri
Lanka Telecom, and so forth. These partnerships have enabled the company to provide end-to-end
solutions in both domestic and international stage.

ADN Telecom Ltd. is an ISO 9001:2015 certified company. Using the latest technology, ADN
Telecom provides world-class service through the most extensive network of customer touch
points. ADN Telecom’s commitment to providing superior customer experience across all touch
points has helped it to remain as the largest ISP for the last few years.

Bashundhara Paper Mills Limited

Bashundhara Paper Mills Limited is engaged in manufacturing and selling of paper and allied
products. The company offers products such as tissue products like toilet tissues, paper napkins,
facial tissues, kitchen towels, pocket tissues, hand towels, paper towels, clinical bedsheets, and
jumbo roll tissues.

Olympic Industries Limited

Olympic Industries Limited was founded in June 1979 as Bengal Carbide Limited, a battery
manufacturer. As we gained the trust of our consumers and witnessed changes in the battery
industry, we decided to diversify into products that could be a part of our consumers’ daily lives.
We saw significant opportunities in the biscuit and confectionery industries and imported our first
lines in 1996. Today, we are the largest manufacturer of biscuits in Bangladesh and biscuits and
confectionery products represent 95%+ of our annual revenue. Over the last 30 years, Olympic has
grown to be the one largest manufacturers, distributors and marketers of fast moving consumer
goods in Bangladesh. What makes Olympic so popular is the quality of our products. We
understand that customers have high expectations, and that their loyalty depends on it. As the
market leader in the biscuits industry, we have only been able to achieve what we have by staying
true to our core values and by focusing on the consumer.
Ratios of the Companies

Overview of Marico Bangladesh Ltd

Marico Bangladesh Ltd. is a leading FMCG (Fast-Moving Consumer Goods) company in
Bangladesh, engaged in the manufacturing, marketing, and distribution of various consumer
products. The company is a subsidiary of Marico Limited, a leading FMCG company in India.
Marico Bangladesh has a diverse product portfolio that includes hair care, edible oils, male
grooming, and skin care products. Its flagship brand is Parachute, which is a well-known hair care
brand in Bangladesh. Other popular brands include Nihar Naturals, Set Wet, Mediker, and Livon.
The company has a strong distribution network, which includes a large number of distributors,
wholesalers, and retailers. Marico Bangladesh also exports its products to several countries in Asia,
Africa, and the Middle East.
Marico Bangladesh is committed to sustainable and responsible business practices. The company
focuses on reducing its environmental impact through initiatives such as waste management,
energy conservation, and water conservation. It also supports community development through
various social initiatives.

P/E Ratio, Dividend Yield and Stock Return of Marico Bangladesh Ltd:

Year P/E Ratio Dividend Yield Stock Return

2018 23.01 0.0208 42.522
2019 26.05 0.012 435.216
2020 25.46 0.009351 438.91
2021 23.32 0.008692 147.809
2022 21.46 0.018584 65.412

The Relationship Between P/E Ratio, Dividend Yield and Stock Return of Marico Bangladesh ltd:

In the above table we can see the data of past five years for Marico Bangladesh Ltd. This company
had a steady growth from 2018 to 2019. P/E ratio, Stock return increased during that period. But
the dividend yield decreased slightly. Lower dividend yield suggests that the company has a higher
growth potential that leads to higher P/E ratio. A high P/E ratio suggests that the market is willing
to pay a premium for the company's earnings. Here the market has high expectations for the
company's future earnings growth, which lead to higher stock returns. But, there is a decreasing
trend from 2020 to 2022. During the Corona pandemic the company stumbled a little and found it
a bit difficult to get back on track. A low P/E ratio suggests that the market values the company's
earnings less than its current stock price. This lead to a drop in the stock price and lower returns.
Dividend yields also decreased as a result. Here, lower dividend yield didn’t increased the P/E
ratio.
Overview of Reckitt Benckiser Bangladesh ltd.
Reckitt Benckiser Bangladesh Ltd. (RB Bangladesh) is a leading consumer goods company in
Bangladesh. The company is a subsidiary of Reckitt Benckiser Group plc, a multinational
consumer goods company based in the United Kingdom.
RB Bangladesh has a diversified portfolio of consumer products in various categories, including
home care, personal care, health care, and infant nutrition. Its popular brands include Dettol,
Harpic, Mortein, Strepsils, Vanish, Clearasil, and Enfamil. The company is focused on providing
innovative solutions to meet the evolving needs of its consumers in Bangladesh.
RB Bangladesh is committed to sustainable and responsible business practices. The company is
focused on reducing its environmental impact through initiatives such as reducing waste and water
consumption, and increasing the use of renewable energy. It is also involved in various social
initiatives aimed at improving the health and wellbeing of communities in Bangladesh.
RB Bangladesh has a strong distribution network in Bangladesh, which includes a large number
of distributors, wholesalers, and retailers. The company has also invested in developing its e-
commerce capabilities to reach consumers through online channels.
Overall, RB Bangladesh is a leading player in the consumer goods industry in Bangladesh, with a
strong focus on innovation, sustainability, and social responsibility.

P/E Ratio, Dividend Yield and Stock Return of Reckitt Benckiser Bangladesh ltd.

Year P/E Ratio Dividend Yield Stock Return

2018 30.61 0.0443 0.2457
2019 24.36 0.031 0.374
2020 25.88 0.0397 0.386
2021 33.5 0.032 0.414
2022 34.12 .0306 0.444

The Relationship among P/E Ratio, Dividend Yield and Stock Return of Reckitt Benckiser
Bangladesh ltd.

Above table shows the correlation among the P/E ratio, dividend yield per share & stock return. In
this table, it is clear that all the factors are fluctuating. In 2022 P/E ratio was 34.12, Dividend
Yield was 0.0306 & Stock Returnwas 0.444; In 2021 Stock’s P/E was 33.5, Dividend Yield
was 0.032 & Stock Return was 0.414; In 2020 Stock’s P/E ratio was 25.88, Dividend Yield was
0.0397 & Stock Return was 0.386; In 2019 Stock’s P/E ratio was 24.36, Dividend Yield
was 0.031 & Stock Return was 0.374 and Lastly In 2018 Stock’s P/E ratio was 30.61, Dividend
Yield was 0.0443 & Stock Return was 0.2457. Here, The P/E ratio was highest in 2022 and the
lowest was in 2019. Dividend yield decreased down the years. While stock return increased. This
shows the relationship between the dividend yield and P/E ratio. Decreasing dividend yield means
that there is a chance of higher growth, that’s why the P/E ratio fluctuated during the period.

1.1 Price to Earnings Ratio

Price to earnings ratio is calculated to measure a company’s current share price relative to its
earning per share (EPS). This ratio shows the perceived market value of the shares aligned with
the company’s earnings. Furthermore, the ratio can also be calculated to identify whether the ratio
is undervalued or overvalued in the contemporary industry. As the earnings per share increase, the
market value of the shares increases simultaneously. With higher earnings, shareholders are highly
likely to invest more in the company (Price Earnings Ratio-Formula, Examples and Guide to P/E
Ratio, 2020).

Current Share Price

Price to Earnings Ratio formula = Earning Per Share

Table 1: Earnings per Share of 10 Listed companies from 2018 to 2022

Companies 2022 2021 2020 2019 2018

Delta life 2.01 1.07 1.89 1.9 1.26

Insurance
Company

Olympic 2.33 1.1 .98 2.2 2.1

Industries
Ltd.

Table 1: Price-Earnings Ratio

2.1 Dividend Yield

A stock, mutual fund, or exchange-traded fund's dividend yield is a ratio that illustrates the amount
of income you receive in dividend distributions each year for every dollar invested in one of these
investments (ETF). Dividend yield, on the other hand, is the annual dividend payment made on a
security stated as a proportion of its market value.
Annual dividend per share
Dividend yield formula = Price per share

Table 2: Dividend yield of 10 Listed companies from 2017 to 2021

Companies 2022 2021 2020 2019 2018

Delta life 2.42 1.5 1.34 2.2 1.97

Insurance
Company

Olympic 2.56 1.7 1.2 2.8 2.3

Industries
Ltd.

Table 2: Dividend yield of different companies

Source: DSE, 2023

3.1 Stock Return

Stock return is a financial term that refers to the change in the price of a stock over a specific
period of time, usually expressed as a percentage. It is a measure of the investment performance
of a stock and is often used by investors to evaluate the profitability of their investments.
To calculate the stock return, you need to compare the price of the stock at the beginning of a
period with the price of the stock at the end of the period. The formula for calculating the stock
return is:
• Stock Return = ((Ending Stock Price - Beginning Stock Price) + Dividends) / Beginning
Stock Price
where:
Ending Stock Price is the price of the stock at the end of the period
The beginning Stock Price is the price of the stock at the beginning of the period
Dividends are any payments made by the company to its shareholders during the period
Table 3: Stock Return of 10 Listed companies from 2017 to 2021
 Companies 2022 2021 2020 2019 2018

Delta life 1.03 .4 .3 .98 1.6

Insurance
Company

Olympic 2.03 1.1 .91 2.07 2.8

Industries
Ltd.

Interpretation

The relationship among P/E ratio, stock return, and the dividend yield is complex and multifaceted,
but generally, they are all important measures of a company's financial health its attractiveness as
an investment.
The price-to-earnings (P/E) ratio is a valuation ratio that compares a company's stock price to its
earnings per share (EPS). It is calculated by dividing the stock price by the EPS. A high P/E ratio
suggests that the market is willing to pay a premium for the company's earnings, while a low P/E
ratio suggests that the market values the company's earnings less than its current stock price.

The stock return is a measure of the total return that an investor has received on their investment
in a stock over a specific period of time, which includes both capital gains (or losses) and
dividends. It is calculated by dividing the ending price of the stock by the beginning price of the
stock and adding any dividends received over the period.
The dividend yield is the ratio of the annual dividend payment per share to the stock price,
expressed as a percentage. It is a measure of the income that a stock generates for its investors.
There are several ways in which these three measures can be related:
▪ A high P/E ratio may suggest that the market has high expectations for the company's future
earnings growth, which could lead to higher stock returns. However, if the company fails
to meet these expectations, it could lead to a drop in the stock price and lower returns.
▪ A high dividend yield may indicate that the company is mature and has limited growth
potential, which could result in lower future earnings growth and a lower P/E ratio.
However, if the company is able to sustain or increase its dividend payments, it could
attract income-oriented investors and result in a higher stock price and higher returns.
A company with a low P/E ratio and high dividend yield may be seen as undervalued by the market,
which could lead to higher demand for its stock and higher returns.
It is important to note that these relationships are not always consistent, and other factors, such as
economic conditions, industry trends, and company-specific factors, can also influence stock
returns, P/E ratios, and dividend yields.
Distinguished scenario for Delta Life insurance Company and Olympic Industries Ltd:

Delta Life Insurance Company Limited

3

2.5

1.5

0.5

0
P/E Ratio Dividend Yield Stock Return

2018 2019 2020 2021 2022

Figure 01: Differentiation among P/E ratio, Dividend Yield, and Stock Return of Delta Life
Insurance Company Ltd. (Author, 2023)

Here, it illustrated that the company’s substantial growth was so hefty but in the middle of the
tenure 2020, the overall P/E ratio, Dividend Yield and Stock return was depleted because of the
Corona circumstances that hit the entire economy. But, Delta life Insurance is trying to flourish all
its financial indicators including P/E ratio, dividend yield, stock return, inventory turnover ratio,
earning margin and total leverage.
 O LY M P I C I N D U ST R I ES LT D
2018 2019 2020 2021 2022

12

10

0
P/E ratio Stock Return Dividend Yield

Figure 2: Differentiation among P/E ratio, Dividend Yield, and Stock Return of Olympic Industries
Ltd. (Author, 2023)
Here, figure 2 shows the correlation among the P/E ratio, dividend yield per share & stock return.
In this graph, it is clear that all the factors are fluctuating. In 2022 Stock’s P/E ratio of Olympic
was 2.33, Dividend Yield was 2.56 & Stock Return was 2.03; In 2021 Stock’s P/E ratio of Olympic
was 1.1, Dividend Yield was 1.7 & Stock Return was 1.1; In 2020 Stock’s P/E ratio of Olympic
was 1.95, Dividend Yield was 1.96 & Stock Return was 1.85; In 2019 Stock’s P/E ratio of Olympic
was 2.2, Dividend Yield was 2.8 & Stock Return was 2.07 and Lastly In 2018 Stock’s P/E ratio of
Olympic was 2.1, Dividend Yield was 2.3 & Stock Return was 2.8. Here one thing is clear the
Dividend yield share is falling & in 2020 and 2019 respectively and it was the lowest. In addition,
the dividend per share decreased in 2016, 2019 and 2018 consequently it is the lowest. Also, the
stock return has decreased, because both dividend per share and earnings per share falling.
1.1 Price to Earnings Ratio

Earnings per Share of Listed companies from 2018 to 2022

Companies 2022 2021 2020 2019 2018

Orion 27.56906 16.91604 15.94484 8.545533 53.24786

Pharma
 Jamuna Oil 9.987651 9.117325 8.317706 8.0633 7.29
Company Ltd

Table 2: Price-Earnings Ratio

Source: DSE, 2023

2.1 Dividend Yield

Dividend yield of Listed companies from 2018 to 2022

Companies 2022 2021 2020 2019 2018

Orion 1% 2% 2% 5% 4%
Pharma

Jamuna Oil 7% 7% 9% 7% 6%
Company Ltd

Table 2: Dividend yield of different companies

Source: DSE, 2023
3.1 Stock Return

Table 4: Stock Return of 10 Listed companies from 2017 to 2021

Companies 2022 2021 2020 2019 2018

Orion 102 47 43 35.36 46.81

Pharma

Jamuna Oil 167 148.7 144.14 188 187

Company Ltd
Interpretation
Distinguished scenario for Orion Pharma and Jamuna Oil Company Ltd:

Figure 01: Differentiation among P/E ratio, Dividend Yield, and Stock Return Orion Pharma

In 2019 the P/E ratio was 8.546 which was the lowest of all and in 2018 the P/E ratio was highest
which was artound 54 % With the. higher earnings 54%, shareholders were highly likely to invest
more in the company.In case of Dividend yield the highest dividend was 5% which was in 2019
but the lowest percentage was in 2022 which was 1% .As higher dividend represents more income
but This is not always good because it can mean that the company’s stock price has been falling at
a higher rate.In case of Stock return 2022 has the highest return which was 102 but lowest was in
2020.
.
Figure 2: Differentiation among P/E ratio, Dividend Yield, and Stock Return of Jamuna Oil
Company Ltd

Here, figure 2 shows the correlation among the P/E ratio, dividend yield per share & stock return.
In this graph, it is clear that all the factors are fluctuating. In 2022 Stock’s P/E ratio of Jamuna oil
was 9.98, Dividend Yield was 7 & Stock Return was 167; In 2021 Stock’s P/E ratio of Jamuna oil
was 9.11, Dividend Yield was 7 & Stock Return was 148; In 2020 Stock’s P/E ratio of Jamuna oil
co. was 8.31, Dividend Yield was 9 which was higher & Stock Return was 144; In 2019 Stock’s
P/E ratio of jamuna oil co.was 8.06, Dividend Yield was 7 & Stock Return was 188 which was the
highest among all and Lastly In 2018 Stock’s P/E ratio of Jamuna Oil Company was 7.29, Dividend
Yield was 6 & Stock Return was 187. Here one thing is clear the Dividend yield share is raising&
in 2018 it was the lowest. In addition, the earning per share has been also increasing gradually.
Also, the stock return has decreased.
Price to Earnings Ratio
Earnings per share of ten listed companies from 2018 to 2022

Companies 2022 2021 2020 2019 2018

Bangladesh 7.9 9.55 14.1 14.2 56.6
Shipping 2
Corporation

ADN Telecom 25.4 19.3 12.8 19.2 18.3

Table: Price-Earnings Ratios

Dividend Yield
Dividend yield of ten listed companies from 2018 to 2022
Companies 2022 2021 2020 2019 2018
Bangladesh 2% 1% 2% 2% 3%
Shipping
Corporation

ADN 4% 3% 1% 1% 5%
Telecom

Table: Dividend yield of different companies

Stock Return
Stock return of ten listed companies from 2018 to 2022
Companies 2022 2021 2020 2019 2018
Bangladesh 115.3 48.8 38.2 49.6 37.6
Shipping
Corporation

ADN 159 83.2 64.9 53.2 48.6

Telecom
Interpretation:
Distinguished scenario for Bangladesh shipping corporation and ADN telecom,

Bangladesh shipping corporation

140

120

100

80

60

40

20

0
2022 2021 2020 2019 2018

P/E ratio Dividend yield Stock return

Figure 01: Differentiation among P/E ratio, Dividend Yield, and Stock Return Bangladesh
shipping corporation.

In 2022 the P/E ratio was 7.92 which was the lowest of all and in 2018 the P/E ratio was highest
which was around 52.6 % with the higher earnings 52.6% , shareholders were highly likely to
invest more in the company. In case of Dividend yield the highest dividend was 3 % which was in
2018 but the lowest percentage was in 2021 which was 1% .As higher dividend represents more
income but This is not always good because it can mean that the company’s stock price has been
falling at a higher rate. In case of Stock return 2022 has the highest return which was 159 but
lowest was in 2028.
 ADN telecom
180
160
140
120
100
80
60
40
20
0
2022 2021 2020 2019 2018

P/E ratio Dividend yield Stock return

Figure 2: Differentiation among P/E ratio, Dividend Yield, and Stock Return of ADN telecom
Here, figure 2 shows the correlation among the P/E ratio, dividend yield per share & stock return.
In this graph, it is clear that all the factors are fluctuating. In 2022 Stock’s P/E ratio of ADN telecom
was 25.4, Dividend Yield was 4 & Stock Return was 159; In 2021 Stock’s P/E ratio of ADN
telecom was 19.3, Dividend Yield was 3 & Stock Return was 83.2; In 2020 Stock’s P/E ratio of
ADN telecom co. was 12.8, Dividend Yield was 1 which was higher & Stock Return was 64.9; In
2019 Stock’s P/E ratio of ADN telecom was 19.2, Dividend Yield was 1 & Stock Return was 53.2
which was the highest among all and Lastly In 2018 Stock’s P/E ratio of ADN telecom Company
was 18.3, Dividend Yield was 5 & Stock Return was 48.6. Here one thing is clear the Dividend
yield share is fluctuating & in 2019 and 2020 it was the lowest. In addition, the earning per share
has been increasing gradually. Also, the stock return has decreased.
Interpretations and findings
PE Ratios Of 10 Companies

Company 2018 2019 2020 2021 2022

Orion Pharma 27.56 16.91 15.94 8.54 53.24
Reckitt Benckiser Bangladesh ltd. 17.23 12.97 11.6 11.88 16.82
Marico Bangladesh ltd 21.31 22.48 21.59 24.25 22.65
Jamuna Oil Company Ltd (JOCL) 9.98 9.11 8.31 8.06 7.28
Bangladesh Shipping Corporation 7.92 9.55 14.1 52.6 86.4
Delta life 32.7 70 -8.65 10.5 15.2
Eastern Housing LTD 9.81 13.6 12.4 16 20.6
ADN Telecom 25.4 19.3 12.8 19.2 18.3
Basundhara Paper Mills LTD 18.5 18.8 24.3 42 20
Olympic industries limited 38 35.5 8.5 25.2 28.4

Dividend yield of 10 Companies

Names 2022 2021 2020 2019 2018

Orion Pharma 1% 2% 2% 5% 4%
Reckitt Benckiser Bangladesh
ltd. 7% 6% 5% 4% 4%
Marico Bangladesh ltd 2% 1% 1% 1% 2%
Jamuna Oil Company Ltd
(JOCL) 7% 7% 9% 7% 6%
Bangladesh Shipping
Corporation 2% 1% 2% 2% 3%
Delta life 3% 3% 8% 5% 4%
Eastern Housing LTD 3% 5% 4% 2% 1%
ADN Telecom 4% 3% 1% 1% 5%
Basundhara Paper Mills LTD 2% 7% 5% 2% 3%
Olympic industries limited 3% 5% 8% 4% 1%

P/E ratio indicates the earning per share. How much earning a company get from a stock shows
the P/E ratio. Higher price sometimes indicates that the stock price is overvalued.
Among 10 companies Olympic has the highest P/E Ratio which is 18.5,18.8,24.3,42 and 20 percent
. Others P/E ratio is not closer to the Olympic. SO Olympic has higher market share and growth
than other 9 companies. Orion Pharma has second highest P/E ratio after Olympic company. Orion
pharma’s P/E ratio is 27.56,16.91,15.94,8.54,53.24 for the year 2018 to 2022. Marico Bangladesh
limited has the third highest P/E ratio which is Marico Bangladesh ltd
21.31,22.48,21.59,24.25,22.65. The poorest P/E ratio is
jamuna Oil company which is Jamuna Oil Company Ltd (JOCL) 9.98,9.11,8.31,8.06,7.28.
The dividend yield indicates that how much dividend get from the stock. Here the highest dividend
get by Reckitt Benckiser Bangladesh ltd.7%,6%,5%,4%,4% and second highest dividend get by
the jamuna corporation. These two companies market growth are best than other companies. The
lowest dividend is for marico which is 2%, 1%,1%,1%,2%.
On Overall basis Reckitt Benckiser Bangladesh ltd doing a great job in stock market. Both the P/E
ratio and dividend yield is absolutely greater than others company. On the other hand eastern
housing limited ratios are not as good as other. The investor have to think twich before investing
on it. Other companies are averagely doing better in the stock market which is acceptable and a
great option for the investor for invest.
Conclusion:
Dhaka stock exchange (DSE) is the biggest secondary stock market in Bangladesh. Over 100 of
companies listed in this stock market. A lot of companies doing business in this stock market with
higher reputation and makes chance for investor for make invest and earn profit. Besides this
because of DSE is a weak stock market a lot of fraud company is also listed here which can make
trouble for the investors. So a investor should careful before making any investment in the stock
market. So before investing in the market a investor has to look too many indicators like P/E ratios
,dividend yield type measuments. If the company’s ratio is good investor can invest without any
fear of losses. So a investor has to careful a lot before investing on stock. These indicators help
him a lot to choose the best option.
References

1. www.dscbd.org
2. www.amarstock.com