Small-cap stock involved in the mining of low-phosphorous manganese and iron ore rose nearly 4 percent on board approval to acquire an additional 19.12 percent, equity share capital of Arjas Steel Private Limited.
Share price variations:
With a market capitalization of Rs. 7,210.55 crores, Sandur Manganese & Iron Ores Ltd. rose to an intraday high of Rs. 460.00 per share representing a 3.9 percent increase from its previous closing price of Rs. 442.60 per share.
Reason for the Rise:
According to recent exchange filings, the Board of Directors of Sandur Manganese & Iron Ores Ltd has approved the acquisition of an additional 19.12% stake in Arjas Steel Private Limited (ASPL), increasing its holding from 80% to 99.12%.
ASPL is an integrated alloy and micro-alloy manufacturer primarily serving the automotive sector. This strategic acquisition paves the way for Sandur Manganese & Iron Ores Ltd to drive forward integration within the steel industry, enhance its portfolio of value-added products, and unlock significant potential for operational and strategic synergies.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 266 percent to Rs. 146.55 crores compared to Rs. 39.95 crore in Q1FY24, while revenue from operations marked an increase of 65.9 percent to Rs. 601.67 crores from Rs. 362.53 crores in comparison to the same period.
About the company:
Incorporated in 1954 The Sandur Manganese & Iron Ores Limited, is the flagship company of the Karnataka-based Sandur Group. The company is involved in the mining of low-phosphorous manganese and iron ore in the Hosapete Ballari region of Karnataka. In addition, the Company manufactures ferro-alloys and coke at its plant in Vyasankare, near Hospet.
Sandur Manganese & Iron Ores Ltd is the third-largest manganese ore miner in India. As of June, the company has a production capacity of 0.46 million tonnes per annum (MTPA) for manganese ore, 3.81 MTPA for iron ore, and 0.50 MTPA for coke. Additionally, the company has a power generation capacity of 32 MW through waste heat recovery boilers (WHRB) and 42.9 MW through solar and wind renewable energy sources.
In FY24 its mining division contributed to 69 percent of its revenue followed by 17 percent from the coke and energy division and 14 percent from ferroalloys division
Written By: Joseph Pv
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