A small, long-running engineering foundry with steady but slow-growing profits and a dependable yearly cash dividend.

Rangpur Foundry Ltd. sits in the engineering sector of the Dhaka Stock Exchange, where it has traded since 1999. As its name suggests, it is a foundry — the kind of business that casts and shapes metal into finished engineering goods. It is one of the market's smaller companies: the whole business is divided into just 1 crore shares, with paid-up capital of about ৳10 crore.

Despite its small size, it is a real, working manufacturer with a long history. Yearly sales reached about ৳150.2 crore in the most recent year (2025), up gradually from ৳136.9 crore in 2021. Over its years on the market it has built up reserves of roughly ৳25.1 crore — more than twice its paid-up capital — which shows profits have been quietly retained inside the business rather than all paid away.

In short, this is an old, established, small engineering name: steady and familiar rather than fast-moving. It is closely held, with founders and institutions owning most of the shares (more on that below).

The company makes its money the simple, old-fashioned way: it buys raw material, casts and manufactures metal engineering products, and sells them. Revenue has grown slowly and steadily — from ৳136.9 crore in 2021 to ৳150.2 crore in 2025, a rise of about 10% over the five years.

The important thing to understand is that this is a low-margin business. Out of about ৳150.2 crore of sales in 2025, operating profit was roughly ৳9.46 crore and the final net profit was only about ৳3.85 crore. In other words, most of every sales taka is eaten up by the cost of metal, manufacturing and running the plant, leaving a thin slice as profit.

That is typical of a foundry: it is a volume, cost-driven manufacturer rather than a high-margin brand. Sales tend to move with demand for its industrial products and the price of raw metal, so profit depends heavily on keeping costs under control.

Rangpur Foundry is reliably profitable. Its earnings per share have sat in a tight band for five years: ৳3.68 (2021), ৳3.81 (2022), ৳3.74 (2023), ৳3.78 (2024) and ৳3.86 (2025). Net profit has moved just as gently, from about ৳3.68 crore to ৳3.85 crore. There are no loss years and no wild swings.

The flip side of that steadiness is that the business is barely growing. Over the whole 2021–2025 span, net profit rose only about 5% and earnings per share about 5%, while sales grew about 10%. So sales are inching up a little faster than profit, which again points to thin, cost-pressured margins.

The most recent nine-month interim figures were broadly flat versus the same period a year earlier, so there is no sign yet of profit suddenly accelerating. This is a company that grinds out the same modest result year after year — dependable, but not a grower.

On the balance sheet, the trend is encouraging. Total debt has fallen from ৳22.7 crore in 2021 to ৳18.6 crore in 2025, while the company's own money (equity) has grown from ৳29.1 crore to ৳35.1 crore. So its debts are now only a bit over half the size of its own money, an improvement from earlier years. Bank borrowings are modest at around ৳9.22 crore, and the operating profit it makes comfortably covers its yearly interest bill.

The soft spot is cash. Reported profit is steady, but the cash actually generated by operations has been low and bumpy: it was slightly negative in 2021 (about -৳1.01 crore), near zero in 2022 (৳0.2 crore), strong in 2023 (৳9.03 crore), and back down to about ৳1.54 crore and ৳1.56 crore in 2024 and 2025. Cash held at the end of 2025 was low, around ৳1.02 crore. When the cash coming in regularly lags the profit on paper, it is worth watching.

On the plus side, an independent credit agency (CRISL) rated the company "AA-" long-term with a stable outlook, and its reserves of about ৳25.1 crore give it a cushion. The picture is of a financially careful, slowly de-leveraging small company — safe enough, but with weak cash generation as the main watch-item.

Dividends are this company's strongest, most consistent feature. For each of the last five years (2021 through 2025) it has declared a 23% cash dividend — that is ৳2.3 per share on the ৳10 face value — without fail. The latest 23% cash dividend, for the year ended June 2025, was declared and disbursed on schedule.

Crucially, the payout looks safe. In 2025 it paid out ৳2.3 per share out of the ৳3.86 it earned per share — close to 60% of its profit. That leaves a slice of earnings retained in the business each year, which is why its reserves and asset value have kept creeping up.

So for an income-minded holder, the appeal is clear: a predictable cash payout, backed by steady earnings, that the company has shown it can maintain year after year. (The dividend yield — what that ৳2.3 is worth against today's price — changes daily and is shown in the live box, not here.)

Rangpur Foundry's real advantage is not scale or a powerful brand — it is consistency. It has ground out steady earnings and the same dividend for years, kept its debt low, and stayed closely held, with sponsors and directors owning 49.89% and institutions another 30.5%. When insiders hold nearly half the company, their interests are well aligned with ordinary shareholders.

Against its engineering-sector peers, though, it is small and slow. Names like Walton Hi-Tech, BSRM Steels and Bangladesh Steel Re-Rolling Mills are far larger businesses, and a couple of the steel peers grew their earnings sharply in the latest year (BSRM Steels and BSRMLTD both grew earnings well over 30%), while Rangpur Foundry's profit stayed roughly flat. It does not have the size, growth or pricing power of the sector's heavyweights.

So the honest read is that its "edge" is defensive: a long track record, a loyal owner base and a reliable payout in a small, stable niche — rather than a wide competitive moat. It is more a steady survivor than a market leader.

• Reliable earnings — profit has been positive and steady every year for five years, with earnings per share holding around ৳3.68–৳3.86.
• Dependable dividend — a 23% cash dividend (৳2.3 a share) paid every year for five years running, using around 60% of profit, so it looks sustainable.
• Getting safer — total debt has fallen from ৳22.7 crore to ৳18.6 crore, and its debts are now only a bit over half the size of its own money.
• Committed owners — sponsors and directors hold 49.89% and institutions 30.5%, so big, informed holders keep real skin in the game.
• Solid standing — an independent agency rates it "AA-" with a stable outlook, and it has been a listed, going concern since 1999.

• Almost no growth — over five years, profit rose only about 5% and sales about 10%; earnings per share have basically stood still.
• Thin margins — only about ৳3.85 crore of net profit on roughly ৳150.2 crore of sales, so a jump in metal or energy costs could squeeze profit quickly.
• Weak, lumpy cash flow — operating cash was negative in 2021 and near zero in 2022, and only about ৳1.5 crore in 2024 and 2025; cash on hand was low at around ৳1.02 crore. Cash often lags the reported profit.
• Small and thinly traded — with about ৳150 crore of sales and just 1 crore shares, it is tiny next to its engineering peers, which can mean more volatile pricing.
• Being outgrown — some larger peers grew earnings 30%+ in the latest year while this company stayed flat, so it risks being left behind.

Rangpur Foundry suits one kind of investor especially well: the patient, income-minded holder who wants a small, financially careful company that pays a dependable cash dividend and slowly strengthens its balance sheet. If your goal is a steady yearly payout from a business that has proven it can keep the lights on and the dividend flowing, this profile fits.

It is a poor fit for anyone chasing fast capital gains or rapid earnings growth. The profit line has barely moved in five years, margins are thin, and the cash actually collected from operations is lumpy — so the reward here is stability and income, not expansion.

The main caveat to keep front of mind is that steadiness cuts both ways: the same qualities that make it dependable also make it slow. Whether today's price is a fair entry point is a separate question, and for that you should look at the live value estimate and the current Buy/Sell signal shown beside this report rather than anything written here.