In Thursday’s trading session, shares of one of the leading steel mining stocks, specializing in the extraction and production of manganese ore and iron ore, jumped by upto 5 percent upon approval from the Central Empowered Committee to enhance the permissible annual production limit of Iron ore
Price action
With a market capitalization of Rs. 6,793.31 crores on Thursday, the shares of Sandur Manganese & Iron Ores Limited rose by 4.5 percent making a high of Rs. 438 per share compared to its previous closing price of Rs. 419.25 per share.
What Happened
Sandur Manganese & Iron Ores Limited specializes in the extraction and production of manganese ore and iron ore.
The company has received approval from the Central Empowered Committee for the enhancement of its Permissible Annual Production (PAP) limit of iron ore, increasing it from 3.81 million tonnes per annum (MTPA) to 4.36 MTPA.
It was issued by the Central Empowered Committee and the company will now proceed to obtain the Consent for Operation (Expansion) from the Karnataka State Pollution Control Board, along with other required regulatory approvals, to begin operations at the enhanced production level.
About the company
Sandur Manganese & Iron Ores Ltd. is a prominent mining company based in India, specializing in the extraction and production of manganese and iron ore. The company operates large-scale mining operations, primarily in the Sandur region of Karnataka, which is known for its rich mineral deposits.
Its operations encompass both mining and processing activities, enabling the production of high-quality manganese ore, which is critical for steel production, as well as iron ore. These ores are essential raw materials for various industrial sectors, including steel, foundries, and alloy manufacturing.
Recent Updates
In September 2024, Sandur Manganese & Iron Ores Ltd. achieved an enhancement in the Environmental Clearance (EC) for iron ore production by 0.216 million tonnes per annum (MTPA) at its Ramghad mines and received additional Consent for Operation for manganese ore production of 0.12 MTPA. In October 2024, the company successfully concluded its maiden Non-Convertible Debenture (NCD) allotment and its listing on BSE Limited. Moving forward, in November 2024, the company closed the strategic business acquisition of Arjas Steel Private Limited, marking a significant step in its expansion strategy.
Shareholding pattern
The shareholding pattern of Sandur Manganese & Iron Ores Ltd. is as follows: Promoters hold 74.22 percent of the total shares, while Foreign Institutional Investors (FIIs) own 0.78 percent, Domestic Institutional Investors (DIIs) hold 1.47 percent, and the remaining 23.54 percent is held by the public.
Financials
The company’s revenue rose by 41 percent from Rs 202.62 crore to Rs 285.4 crore in Q2FY24-25. Meanwhile, Net profit grew from Rs 26.98 crores to Rs 32.14 crore during the same period.
Key Financial ratios
Sandur Manganese & Iron Ores Ltd has an impressive Return on Equity (RoE) of 15.07 percent and a Return on Capital Employed (RoCE) of 18.87 percent. Furthermore, the company’s debt-to-equity ratio is 0.12.
Written by Sridhar J
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