Shares of this company engaged in steel production surged 15 percent in Friday’s trading session after its joint venture company got LoI for the composite license. The shares have delivered a multibagger return of 113 percent in one year to its shareholders.
With a market capitalization of Rs. 7,772 crores, the shares of Sarda Energy and Minerals Ltd started Friday’s trading session on a higher note at Rs. 206 compared to its previous close of Rs. 195.60. During the trading session, the shares hit a high of Rs. 224.60, gaining around 15 percent and are currently trading at Rs. 223 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that Natural Resources Energy Pvt. Ltd. a Subsidiary Joint Venture Company (NREPL), had been awarded the Letter of Intent for a composite licence from the Industry, Energy, Labour, and Mining Department, Government of Maharashtra, for Surjagad 1 iron ore block in Maharashtra.
Furthermore, it received the composite license for iron ore on 1526 hectares. Sarda Energy has a 51 per cent economic interest in the joint venture company. This enables them to contribute to the iron ore supply chain and potentially enhance their production capabilities in the iron and steel sector.
Coming onto the company’s financial statements, the revenue decreased by 8 percent from Rs. 1,001 crores during the September quarter to Rs. 925 crores in the December quarter. On the other hand, the net profits declined by 24 percent from Rs. 149 crores to Rs. 114 crores during the same period.
The company recorded the highest-ever production of iron ore pellets, Wire Rods, and captive power during the quarter and plans for an additional hydropower project in Chhattisgarh and expansion of coal mining capacities.
Moreover, the mining company is focusing on key projects such as the Waste to Wealth Project, which involves the conversion of waste into valuable resources. Additionally, the company is working on various projects through Special Purpose Vehicles (SPVs) to drive growth and expansion.
Additionally, the company was installing a 50-megawatt solar power project in Chhattisgarh to meet captive power requirements, with the project estimated to cost Rs. 200 crores and expected to be operational before the end of the next financial year.
Headquartered in Chhattisgarh, Sarda Energy and Minerals was incorporated in 1973. It is the flagship company of Sarda Group and is engaged in the production of steel, ferro alloys and power. It is known for being one of the lowest-cost producers of steel, including sponge iron, billets, ingots, TMT bars, and ferroalloys.
Written By Vaibhav Patil
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