On Monday the small-cap stock hit its 5 percent upper circuit of Rs 175.45 per share from its previous close of Rs 167.10 after the company plan for a coal mine in Chhattisgarh.
According to Prakash Industries Limited, the company is rapidly progressing its Bhaskarpara coal mine project in Chhattisgarh with two major land acquisition payments.
Following an earlier Rs. 35.12 crore payment to the Collector’s office for compensatory afforestation land, the Forest Department has received Rs. 23.25 crore for diverted forest land.
With critical approvals and clearances such as Environmental Clearance (EC) already secured and development progressing steadily, the mining lease is expected this quarter.
Looking at the financials of Prakash Industries Limited, net revenue increased by 14 percent year on year, from Rs 777 crore in Q2FY23 to Rs 889 crore in Q2FY24, and the net profit rose by 102 percent year on year, from Rs 44 crore in Q2FY23 to Rs 89 crore in Q2FY24.
The company has a price-to-earnings ratio of 10, a low debt-to-equity ratio of 0.17, a return on equity of 6 percent, a return on capital employed of 8 percent, and a net profit margin of 5 percent.
Prakash Industries Ltd’s promoter holds 44 percent of the company stake, the general public holds 49 percent the foreign institutional investors hold 6 percent and the rest is held by the domestic institutional investors.
Ace investor Mr. Dolly Khanna holds 17.9 Lakh equity shares which is one percent of the company.
It was a small-cap stock with a market capitalization of Rs 3,141 crores. The share price of the company rose by 127 percent and 200 percent in the last year. For example, if an investor invested Rs 1 Lakh a year ago the current value would be Rs 3 lakh.
Prakash Industries Limited is an India-based company that primarily manufactures and sells steel products as well as generates power. The company is also involved in the mining of iron ore and coal.
Written by Sriram KV
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