Shares of this small-cap mining company rallied over 10% in today’s session!
The company has received approval from the Central Empowered Committee (CEC) for enhancement in the maximum permissible annual production of manganese ore.
The shares of Sandur Manganese & Iron Ores Ltd are buzzing on the bourses today. As of 12.24 pm, the shares of the company are trading higher by 13%. Even in the pre-opening session today, the shares of the company witnessed heavy demand from buyers. Today, the company reported a spurt in trading volume by more than 3.5 times. Owing to this, the stock is one of the top gainers on BSE from Group A.
Meanwhile, the frontline index S&P BSE Sensex is trading flat.
Why the rally?
Yesterday, the company announced that it has received approval from the Central Empowered Committee (CEC) for enhancement in the maximum permissible annual production of manganese ore. With this, the company's production limit has increased from 2.86 lakh tonnes to 5.82 lakh tonnes.
It should be noted that the company is expected to receive consent for operation from the Karnataka State Pollution Board and approval from the Monitoring Committee constituted by the Supreme Court in due course of time. The company intends to start operations at an enhanced level of production in the next financial year.
Looking at the financial performance, in the recent quarter Q3FY23, the company’s consolidated net revenue decreased by 21% YoY to Rs 387 crore. Similarly, the bottom line decreased by 62% YoY to Rs 41.2 crore.
The company is currently trading at a TTM PE of 7.13x against the industry PE of 8.47x. 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 2,614.16 crore.
Share price movements of Sandur Manganese & Iron Ores Ltd
Today, the scrip opened at Rs 929.95 and has touched a high and low of Rs 994 and Rs 929.95, respectively. So far 84,184 shares have been traded on the bourses. The stock has a 52-week high & low of Rs 1,700.13 and Rs 655, respectively on BSE.
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