This small-cap company from the industrial minerals space mined over 100% returns for its investors in the last 2 years!

This small-cap company from the industrial minerals space mined over 100% returns for its investors in the last 2 years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-12-21T11:52:50+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.36 lakh today.  

Sandur Manganese & Iron Ores Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 327.86 on 21 December 2020 to Rs 775.95 on 20 December 2022, an increase of 136% in the two-year holding period. 

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.36 lakh today. 

Sandur Manganese & Iron Ores Ltd (SMIORE) is engaged in the mining of finest low-grade, low phosphorous, manganese and iron ores, facility for the production of ferroalloys and management of hydroelectric power generation. Reserves in the company’s lease area are estimated at 40 million tonnes (Mt) of low-grade iron ore, about 8 Mt of low-grade manganese ore and nearly 100 Mt of BHQ, keeping the scope of expansion alive. 

In the recent quarter Q2FY23, the company’s net revenue decreased by 15.4% YoY to Rs 478.50 crore. Owing to steeper growth in expenses, the bottom line decreased by 87% YoY to Rs 21.91 crore. 

The company is currently trading at a TTM PE of 5.24x against the industry PE of 9.25x. In FY22, the company delivered an ROE & ROCE of 50% and 57%, respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 2,169.92 crore. 

Today, the scrip opened at Rs 775.95 and has touched a high and low of Rs 817.15 and Rs 771, respectively. So far 20,562 shares have been traded on the bourses. 

At 11.36 am, the shares of Sandur Manganese & Iron Ores Ltd were trading at Rs 789, an increase of 1.68% from the previous day’s closing price of Rs 775.95 on BSE. The stock has a 52-week high & low of Rs 1,700.13 and Rs 655 respectively on BSE.

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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