Shares of this small-cap mining stock gained up to 11 percent in Thursday’s trading session after the company received a consent order from the State Pollution Control Board (SPCB) for the production of Iron Ore in Odisha.
With a market capitalization of Rs 4,545.69 crores, the stocks of Orissa Minerals Development Company Limited opened their trading hour on Thursday at Rs 7,506.35 and currently trades at Rs 8,029.
The company’s scrip saw an intra-day high price of Rs 8,342.35 representing a gain of approximately 11 percent as compared to the previous closing levels of Rs 7,524.80 apiece.
Such positive stock price movements are observed today after the company, through a regulatory filing with the exchange, intimated that it has received a consent order from the State Pollution Control Board (SPCB) to operate for Bagiaburu Iron Ore mines based in Odisha to produce Iron Ore. The capacity of the same is 3,60,000 Tonnes Per Annum (TPA).
During the recent financial quarters, the company reported an increase in its basic business parameters such as operating revenues and net profits. The former moved from Rs 3.40 crores during Q1FY23-24 to Rs 16.62 crores during Q2FY23-24, and, the latter, transitioned from a loss of Rs 14.91 crores to a profit of Rs 1.92 crores.
In the past couple of financial years, the company has severely underperformed with the profitability ratios reported in the red. Moreover, the debt-to-equity ratio, one of the well-known leverage metrics, was reported in the red during the recent financial year.
According to the shareholding pattern data available for the September 2023 quarter, the company’s Promoters hold a 50.01 percent stake, and, the Public (retail) investors, reducing their stake, currently hold a 38.31 percent stake in the company.
Incorporated in 1918, Orissa Minerals Development Company Limited is engaged in the business of mining and marketing iron ore and manganese ore in India. The company also produces and sells sponge iron.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
