A mid-sized denim maker with a five-year habit of paying a 10% cash dividend and a big jump in 2025 profit — but modest returns on the money invested and an uneven earnings record.
Argon Denims is an established denim and textile maker, listed since 2013, that has paid a 10% cash dividend every year for the last five years and posted a sharp rise in profit in 2025. It suits patient, income-minded investors who are comfortable with the ups and downs of a competitive textile business, rather than people chasing steady, fast growth. The value method below weighs the price against the share's own past pricing, similar companies, its asset value and its dividend — but today's read sits in the live value box beside this report.
Value today
Looks cheapToday
৳21.0
Rough estimate
৳42.6
Based on its own past price levels, what similar companies trade at, the value of what it owns and the dividend it pays. · low confidence
- Its own usual price vs profit৳44.7
- Priced like similar companies (profit)৳65.3
- Its own usual price vs asset value৳19.2
- Based on the dividend it pays৳16.7
A rough, educational estimate from the figures we have — not a price target or advice.
Data as of 2026-07-16
What does this company do?
Argon Denims is an established maker of denim fabric and garments, on the Dhaka market since 2013.
Argon Denims Limited is a Bangladeshi textile company that makes denim fabric and related garment products. It has traded on the Dhaka Stock Exchange since 2013 and belongs to the textile sector.
It is a mid-sized company. There are 13.9 crore shares, each with a face value of ৳10, paid-up capital of ৳138.9 crore, and accumulated reserves of ৳129.3 crore. In its latest financial year, ended June 2025, it did about ৳562.2 crore of sales.
Ownership is fairly concentrated among insiders and big investors. The sponsors and directors hold 35.87%, institutions hold 33.66%, and the general public holds 30.47%. There is no government or foreign shareholding.
How does it make money?
It earns by selling denim fabric and garments; its yearly sales sit in the ৳450–570 crore range.
The company makes its money by manufacturing and selling denim cloth and garment products, mostly to buyers in the clothing supply chain. Revenue is the main engine — the more fabric and garments it sells, the more it earns.
Sales have moved in a fairly narrow band recently: about ৳469.6 crore in 2022, ৳455.5 crore in 2023, ৳567.5 crore in 2024 and ৳562.2 crore in 2025. So the top line grew from 2023 to 2024 and then held roughly flat.
Because it buys raw materials — cotton, yarn, dyes and energy — and sells finished fabric, its profit depends heavily on the gap between those input costs and its selling prices. When that gap widens, profit can rise quickly, as it did in 2025.
Is it actually making money?
Yes, and profit jumped sharply in 2025 — but the record is bumpy and the newest quarters have softened.
Profit per share went ৳0.71 (2021) → ৳0.52 (2022) → ৳0.68 (2023) → ৳0.75 (2024) → ৳1.68 (2025). Net profit followed a similar path: ৳9.4 crore, ৳7.16 crore, ৳9.46 crore, ৳10.5 crore, then a big jump to ৳23.3 crore in 2025. Over 2021 to 2025, net profit rose about 148% and profit per share about 137%.
The eye-catching part is 2025: profit more than doubled even though sales barely changed (৳562.2 crore versus ৳567.5 crore the year before). That points to better margins or lower costs rather than more selling — welcome while it lasts, but worth watching to see if it holds.
A note of caution: the company's own quarterly updates for the current year (July 2025 to March 2026) show profit per share of ৳0.90 for those nine months, down from ৳1.42 in the same nine months a year earlier. So after the strong 2025 result, the most recent figures are running lower.
Is it financially safe?
Debt is moderate and steady and it holds decent cash, but its loans are more than twice its reserves — the main watch point.
The company carries a moderate amount of debt. Its total borrowings were ৳257.1 crore (2022), ৳242.9 crore (2023), ৳282.0 crore (2024) and ৳276.0 crore (2025), against owners' equity of ৳341.2 crore in 2025. That is roughly 0.8 taka of debt for every 1 taka of owners' money — not alarming, and steady over the years.
It also keeps a cash cushion: ৳90.4 crore of cash at the end of 2025 (it was ৳102.3 crore a year earlier). An outside rating agency, CRISL, rated the company AA- for the long term with a stable outlook, based on accounts up to June 2025.
The one real flag is that total loans of ৳293.2 crore are more than double the accumulated reserves of ৳129.3 crore. Cash generated from day-to-day operations has also been uneven — negative -৳5.68 crore in 2022, then ৳36.2 crore (2023) and ৳51.3 crore (2024), but only ৳13.1 crore in 2025 even though reported profit was much higher. Profit and cash did not move together in 2025, which is worth keeping an eye on.
How do we judge if it's fairly priced?
We weigh the price four ways — against the share's own past pricing, similar companies, its asset value, and its dividend.
To judge whether the share is fairly priced, we compare today's price (shown live beside this report) against four durable yardsticks. First, how the market has usually priced this very share against its profit: over the past few years it has, on average, been valued at roughly 27 taka for every 1 taka of yearly profit per share. Second, how similar textile companies are priced.
Third, the value of what the company owns after paying its debts — that asset value works out to about ৳24.57 per share at the end of 2025, and it has stayed in the ৳24–26 range for years. Fourth, the dividend it pays relative to the price.
The durable building blocks are its profit per share of ৳1.68 in 2025 and that asset value of about ৳24.57. We do not print today's price, the current price-to-profit multiple, the dividend return, or a cheap/fair/expensive label here — those move every day and are shown in the live value box beside this report.
Value today
Looks cheapToday
৳21.0
Rough estimate
৳42.6
Based on its own past price levels, what similar companies trade at, the value of what it owns and the dividend it pays. · low confidence
- Its own usual price vs profit৳44.7
- Priced like similar companies (profit)৳65.3
- Its own usual price vs asset value৳19.2
- Based on the dividend it pays৳16.7
A rough, educational estimate from the figures we have — not a price target or advice.
Does it reward shareholders?
A dependable 10% cash dividend every year — but for several years the payout was larger than the profit behind it.
Argon has paid a 10% cash dividend — ৳1 per share on the ৳10 face value — in each of the last five years (2021 through 2025), and it added a 5% bonus share dividend in 2021. That is a consistent record, and the company disbursed the 2025 dividend to shareholders as usual.
The catch is cover. In 2025, profit per share of ৳1.68 comfortably covered the ৳1 dividend. But in 2022, 2023 and 2024 the company earned only ৳0.52, ৳0.68 and ৳0.75 per share while still paying ৳1 — meaning it paid out more than it earned in those years, leaning on its reserves to keep the dividend steady.
So the dividend has been reliable in taka terms, but its safety only really improved in 2025, when earnings finally rose above the payout. Whether it stays comfortably covered depends on profit holding up.
What makes it special?
Little special edge — a mid-sized player in a crowded denim market, with modest returns on the money invested.
Argon's main weakness is its competitive edge. Denim and textiles are a crowded field with many mills, and the company has limited power to set its own prices. Its profit for every 100 taka of sales is thin, which is typical for the trade.
On how much profit it squeezes from the owners' money, it sits on the lower side of its peer group. Stronger textile names in the fact pack do noticeably better on this measure — Paramount Textile earns about 17 taka and Envoy Textiles about 14 taka of profit for every 100 taka of owners' money, while Argon and peers like Tamijuddin (about 7 taka) and Simtex (about 5 taka) are well below them.
What it does have going for it is longevity and alignment: listed since 2013, a steady dividend habit, and meaningful insider and institutional ownership (sponsors 35.87%, institutions 33.66%). Those are stability points, not a strong competitive moat.
Why it could do well
A strong 2025 profit year, a five-year dividend habit, moderate debt, real cash generation and aligned owners.
- Big profit jump in 2025. Net profit rose to ৳23.3 crore and profit per share to ৳1.68 — up about 148% and 137% respectively over 2021–2025.
- Dependable dividend. A 10% cash dividend (৳1 per share) every year for five years, now comfortably covered by 2025 earnings.
- Moderate, stable debt. Borrowings of roughly 0.8 taka for every 1 taka of owners' money, plus a cash cushion of ৳90.4 crore at the end of 2025.
- Real cash in recent years. ৳36.2 crore (2023) and ৳51.3 crore (2024) of cash from operations show the business can generate genuine cash.
- Aligned owners. Sponsors hold 35.87% and institutions 33.66%, so insiders and big investors have real skin in the game; an outside agency rates it AA- with a stable outlook.
What could go wrong
Modest underlying returns, an unproven 2025 jump, dividends that outran profit, loans above reserves, and lumpy cash flow.
- Modest underlying returns. It earns less profit on the owners' money than the stronger textile peers, and margins are thin — its business strength is its weak spot.
- The 2025 jump may not stick. Profit doubled without sales growth (revenue ৳562.2 crore versus ৳567.5 crore), and the newest nine-month figures (৳0.90 per share, July 2025–March 2026) are below the ৳1.42 of a year earlier.
- Dividend was not always covered. In 2022–2024 it paid ৳1 while earning only ৳0.52–0.75 per share, leaning on reserves to hold the dividend.
- Loans above reserves. Total loans of ৳293.2 crore are more than twice the accumulated reserves of ৳129.3 crore.
- Lumpy cash flow. Cash from operations was negative in 2022 and only ৳13.1 crore in 2025 despite higher profit; textiles are also cyclical and exposed to swings in input costs and export demand.
So, is it for you?
Best for patient, income-minded investors who accept textile ups and downs — not for those wanting steady, fast growth or ironclad dividend cover.
Argon Denims is a steady, mid-sized textile company with a five-year habit of paying a 10% cash dividend and a genuinely strong profit year in 2025. For an investor who values regular dividend income and is comfortable with a business whose profits swing with cotton prices and export demand, it has appeal.
The honest caveats are that its returns on the money invested are modest, its dividend was not fully covered by profit in three of the last four years, its loans sit above its reserves, and the most recent quarters have softened after the strong 2025 result. This is not a fast, dependable grower.
If you want steady income and can ride out an uneven textile cycle, it fits that profile; if you want strong, reliable growth or a dividend that is always covered by earnings, weigh those caveats carefully first. The live value box and Buy/Sell signal beside this report reflect today's price.
This is educational information, not investment advice. Do your own research or talk to a licensed adviser before making any decision.