Synopsis:
Ashapura’s overseas subsidiary has partnered with China Railway to jointly develop the Boffa bauxite deposit in Guinea, focusing on mining, logistics, and infrastructure.
The shares of the Small-Cap company specializing in the mining, manufacturing, and trading of various industrial minerals and their derivative products, jumped upto 4 percent upon signing a long-term Strategic Agreement with China Railway.
With a market capitalization of Rs. 5,997.61 crores on Wednesday, the shares of Ashapura Minechem Ltd jumped upto 3.8 percent, making a high of Rs. 644.00 per share compared to its previous closing price of Rs. 620.40 per share.
What Happened
Ashapura Minechem Ltd, engaged in the mining, manufacturing, and trading of various industrial minerals and their derivative products, has announced that through the company’s overseas Subsidiary, it has executed a Strategic Co-operation Agreement with China Railway, a global Fortune 500 company.
This agreement, following the previous disclosure of a Memorandum of Understanding (MoU), involves a collaboration to jointly develop the Boffa bauxite deposit in Guinea. Under the agreement, China Railway will assist Ashapura in its mining operations, local logistics, and port handling & infrastructure services.
The partnership aims to enhance Ashapura’s production capabilities, foster economic growth, and improve the lives of local communities in the region, aligning with sustainable development goals. This collaboration represents a significant step towards mutual economic upliftment and community welfare in Guinea.
Financials & Others
The company’s revenue rose by 90 percent from Rs. 714 crore to Rs. 1,356 crore in Q1FY25-26. Meanwhile, Net profit rose from Rs. 60 crores to Rs. 114 crores during the same period.
The company has shown strong financial performance with an ROCE of 18.6% and a ROE of 27.1%. Its debt-to-equity ratio stands at 0.94, indicating a balanced financial structure. Over the past 5 years, the company has achieved a 43.2% CAGR in profit growth.
Ashapura Minechem Ltd is a leading Indian company engaged in the mining, processing, and export of minerals such as bentonite, bauxite, kaolin, silica sand, ball clay, bleaching clay, and calcium carbonate. It is widely recognized as India’s largest mine owner and exporter of bentonite, with operations and subsidiaries in multiple countries.
It has built strong capabilities in mineral solutions for industries like petrochemical, oil refinery, ceramics, cosmetics, construction, and water treatment. The company operates several processing plants in India and offers products for industrial, refractory, adsorbent, and building material applications.
Ashapura, with over 60 years of legacy it is a leading multi-mineral solutions provider with a global presence. Operating across India and 7 other countries, including Belgium, Malaysia, Korea, China, Oman, the UAE, and Indonesia, and serving industries ranging from soaps to steel, energy to edible oils, metals to medicine, and cement to ceramics and they also focus on sustainably enriching nature’s mineral resources while benefiting society.
Written by Sridhar J
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