Prakash Industries receives mining lease; aims at enhanced profitability
Time:Thu, 12 Jan 2017 01:30:38 +0800
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With a view to substantially improve its operating margin and profitability, Prakash Industries grabbed a mining lease from the state government of Odisha.
The Odisha government executed and registered a mining lease of iron ore and manganese ore in favour of the company in Keonjhar district of state for 50 years. As per the plan, geological reserves are around 9.9 million tonnes.
Mining is forecasted to be developed 6 months down the line and thereafter the iron ore produce will be used for captive purpose.
Prakash Industries manufactures ferro alloys, MS TMT/MS Coil and allied products, HB Wire Rod and PVC Pipes and Sockets. The company deals in three segments viz; Power, Steel and PVC Pipes.
In FY16 company posted a de-growth of 27.5% in its revenues but managed to post 120% growth in the net profit, driven by higher operating profit growth of 15.7%. September quarter too posted a de-growth of 12.9% in revenues and net profits grew marginally by 3.6% qoq.
Stock View:
Prakash Industries Ltd ended at Rs 63.15, up by Rs 4.1 or 6.94% from its previous closing of Rs 59.05 on theBSE.
The scrip opened at Rs 59.5 and touched a high and low of Rs 64.25 and Rs 59.5 respectively. A total of 2976679(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 800.73 crore.
The BSE group 'B' stock of face value Rs 10 touched a 52 week high of Rs 63.4 on 18-Oct-2016 and a 52 week low of Rs 23.05 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs 59.7 and Rs 48.05 respectively.
The promoters holding in the company stood at 46.11 % while Institutions and Non-Institutions held 3.97 % and 49.92 % respectively.
The stock traded above its 100 DMA.
