Share prices of Sarda Energy and Minerals Ltd saw a significant rise on Tuesday. The stocks raised by approximately 10% and reached a new 52-week high of Rs 1,749.85 on BSE.
The surge in prices was coincided with a trading volume that saw a rise of 2.73 times. Since the board of the company announced stock split on May 27, the prices in stocks of the company surged by 54%.
Sarda Energy and Minerals Limited is a member of the Sarda Group and the renowned company is engaged in production of steel, ferro alloys and power. SEML offers a wide range of products which includes Wire rods, HB wires, Ferro Alloys, Pellets, Sponge iron, and Billets among others showcasing a diverse range of offerings.
SEML in its regulatory filing said, “This is to inform that pursuant to regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Friday, 4th August 2023 has been fixed as the “record date” for the purpose of sub-division/split of existing equity shares of the company from 1 equity share having face value of Rs 10 fully paid up, into 10 equity shares having face value of Rs 1 each fully paid up.”
The company saw a remarkable performance last year with returns upto 98% and exceptional returns of over 947% in the past three years. The company has also recorded its highest-ever annual production and sales of Wire Rod, HB wire and Iron Ore Pellet. In addition to various remarkable achievements the company also generated its highest ever annual thermal power and hydro power generation.
On March 15, this year company obtained an approval to increase the capacity of the Wire Rod Mill from 180,000 MT to 250,000 MT. Additionally, on December 15, 2022, a new capacity of 36 MVA was successfully commissioned at the Vizag facility. Also, the total capacity for Green Power, which stands at approximately 163.3 MW, exceeds that of Thermal Power. Furthermore, construction has commenced on a 24.9 MW plant along the Rehar river in Chhattisgarh, with an anticipated completion date for commercial operation in FY25. This can push the companies net profit delivering returns to its shareholders.
It has been highly recommended for investors to closely monitor the position of this stock looking at the past profit returns.
