Shares of two small-cap companies surged nearly 8 percent on Monday after receiving a 30-year mining license. The Government of Chhattisgarh granted a mining lease for the Bhaskarpara Commercial Coal Mine in Surajpur District to one company, while the other was selected as the Preferred Bidder for the Gare Palma IV/5 Coal Mine in Raigarh, Chhattisgarh.
Price Movement
On Monday, Sarda Energy & Minerals Ltd‘s share price rose by 7.5 percent, reaching an intra-day high of Rs.445.00, up from the previous close of Rs.414.00. Similarly, Prakash Industries saw its shares climb 7.6 percent, hitting an intra-day peak of Rs.175.20, up from Rs.162.71 per share.
What Happened
Sarda Energy & Minerals Ltd has been selected as the Preferred Bidder for the Gare Palma IV/5 Coal Mine located in Raigarh, Chhattisgarh. The company will manage the mine under a 25.75 percent revenue-sharing agreement with the state government.
The coal extracted from this mine holds a provisional G8 grade, ensuring good quality. This development supports the Indian government’s efforts to boost domestic coal production, with formal agreements expected to be finalized soon, potentially driving growth for Sarda Energy.
Prakash Industries Limited announced that the Government of Chhattisgarh has granted a mining lease for its Bhaskarpara Commercial Coal Mine in Surajpur District. The lease, effective for 30 years, was registered today.
The company plans to begin overburden removal next month, with coal extraction expected to start in the following quarter. This mine will support the company’s integrated steel operations, leading to significant cost savings and boosting revenues and profitability through coal sales in the open market.
Also read….
Financial Performance
In its latest financial update, Sarda Energy & Minerals reported net sales of Rs.1,159 crore for Q2 FY25, indicating a 15.78 percent increase from Rs.1,001 crore in Q2 FY24. Moreover, net profit after tax rose 36 percent to Rs.203 crore, up from Rs.149 crore during the same period.
According to its latest financial update, Prakash Industries Ltd reported net sales of Rs.1,077 crore for Q2 FY25, indicating a 21 percent increase from Rs.889 crore in Q2 FY24. Moreover, net profit rose 1.1 percent to Rs.90 crore, up from Rs.89 crore during the same period.
About the Company
Sarda Energy & Minerals Ltd is the flagship entity of the Sarda Group, based in Raipur, Chhattisgarh. The company is a vertically integrated steel producer, specializing in sponge iron, billets, and ferro alloys. SEML is also one of India’s leading exporters of manganese-based ferro alloys.
Prakash Industries Ltd (PIL) is a prominent steel manufacturer located in Chhattisgarh, India. The company produces various steel products, such as sponge iron, TMT bars, and wire rods, with an annual production capacity of approximately 1.25 million tonnes. PIL also generates electricity through its captive power plants and has made investments in renewable energy sources.
Written by – Siddesh S Raskar
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.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
