Rak Ceramics (Bangladesh) Ltd
Rak Ceramics (Bangladesh) Ltd is a construction supplies and fixtures company that produces and sells ceramic products, primarily in Bangladesh, generating revenue through the sale of tiles and related construction materials.
Business. Rak Ceramics (Bangladesh) Ltd (RAKC.DH) is a manufacturer of construction supplies and fixtures, operating within the Consumer Cyclicals sector. The company is headquartered in Bangladesh and is primarily listed on the Dhaka Stock Exchange. Specific details regarding its operating segments and geographic revenue mix are not disclosed.
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Pre-earnings brief
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Synthesis
Rak Ceramics (Bangladesh) Ltd (RAKC.DH) is a manufacturer of construction supplies and fixtures, operating within the Consumer Cyclicals sector. The company is headquartered in Bangladesh and is primarily listed on the Dhaka Stock Exchange. Specific details regarding its operating segments and geographic revenue mix are not disclosed.
Rak Ceramics maintains a relatively balanced capital structure, with a debt-to-equity ratio of 0.2, indicating a conservative use of leverage. The company's liquidity position is assessed as medium, with a current ratio of 1.4, suggesting it can cover its short-term obligations but with limited buffer. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.
Profitability metrics show a return on equity (ROE) of 0.62% and a return on assets (ROA) of 0.28%, both of which are below the industry median for construction supplies and fixtures. This suggests that the company is underperforming in terms of capital efficiency and asset utilization. Gross profit of BDT 378.2 million and operating income of BDT 84.8 million indicate a narrow margin structure, which may limit resilience in a downturn.
The company's revenue is concentrated in Bangladesh, with no disclosed international operations, making it highly sensitive to domestic economic conditions and construction demand. There are no segment disclosures beyond the core ceramic products, and no geographic diversification is evident in the financial data.
Looking ahead, the company's revenue is expected to grow, though the exact rate is not specified. Capital expenditures were negative at BDT 80.7 million, indicating asset disposals or reduced investment in the most recent period. This may reflect a strategic shift or a response to market conditions, but it could also signal a lack of reinvestment in growth opportunities.
Risk factors include medium liquidity risk due to the current ratio and negative net cash position, as well as the potential for dilution, though it is currently assessed as low. No recent equity issuance or dilutive events are disclosed, and the company's shares outstanding remain unchanged between basic and diluted measures.
Recent filings and transcripts are not available in the provided data, so no specific events can be cited. However, the company's financial performance and capital structure suggest a need for close monitoring of liquidity and profitability trends.
- Rak Ceramics has a conservative debt-to-equity ratio of 0.2, indicating limited leverage.
- The company's ROE of 0.62% and ROA of 0.28% are below industry medians, suggesting weak capital efficiency.
- Revenue is concentrated in Bangladesh, with no international diversification disclosed.
- Capital expenditures were negative in the most recent period, indicating asset disposals or reduced investment.
- Liquidity risk is medium, with a current ratio of 1.4 and a negative net cash position after debt.
Bull / Bear case
Generated · model-assistedOperating margin of 4.79% exceeds the 4.64% median for the Construction Supplies & Fixtures cohort.
Cash conversion of 7.67 is best-in-class, significantly outperforming the 1.01 cohort median.
Debt-to-equity ratio of 0.20 is lower than the 0.29 cohort median, indicating conservative leverage.
Revenue grew 10.6% year-over-year from FY-1 to the latest reported period FY0.
Long-term debt decreased substantially from 1.6 billion BDT in FY-1 to 440 million BDT in FY-4.
The company faces a high credit risk flag, signaling potential financial stability concerns.
Liquidity risk is rated as medium, indicating potential challenges in meeting short-term obligations.
In focus — financials by report
Revenue BDT 7.82B, +4,9% YoY; Operating income −9,6% YoY.
- ▍Revenue BDT 7.82B, +4,9% YoY
- ▍Operating income −9,6% YoY
- ▍Net income −7,9% YoY
- ▍Free cash flow +24,7% YoY
- ▍Net margin 7.9%
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- Net cash is negative after subtracting total debt.
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- Rak Ceramics (Bangladesh) Ltd Market data — financials · 2026-05-29