Sandur Manganese & Iron Ores Ltd, a smallcap stock engaged in the coal sector, is a hot pick for short-term gains. Brokerage Axis Securities has recommended BUY on this stock for a target price of Rs 555 for a timeframe of 0-15 days. Sandur is among the bonus and dividend-paying stocks in 2024. The company delivered one of the biggest bonus issues of 2024. However, on a weekly, and half-yearly basis, the stock has corrected sharply, giving a buy-on-dips opportunity.
Sandur Manganese and Iron Ores Ltd Share Price:
After market hours of December 16, Sandur Manganese stock dipped by over 1% to close at Rs 482.90 apiece on BSE with a market cap of Rs 482.90 crore. The stock's 52-week high and low is at Rs 636.15 apiece and Rs 330.60 apiece respectively.
Sandur's weekly performance is down by nearly 9%, while in six months, the dip was about 12%. YTD, the stock has surged by a little over 5%.
Dividends: Earlier this year, the stock turned ex-dividend for a final dividend of Rs 1 per share for FY24. The record date was on September 11, 2024. This dividend payout is smaller compared to the Rs 5 dividend per share each paid in 2023 and 2022.
Bonus Issue: At the start of 2024, the stock turned ex-bonus on February 2 for bonus shares in the ratio of 5:1. That means Sandur delivered 5 free shares on the existing 1 equity share.
BUY Sandur Manganese and Iron Ores Ltd Stock:
Axis Securities added the stock to its positional pick. The brokerage recommends BUY for a target price of Rs 555, with a stop loss of Rs 482 for a timeframe of up to 15 days. The entry price in the stock is between Rs 488 to Rs 502. At the current market price, the stock has a potential of nearly 15%.
Fundamentals of Sandur Manganese and Iron Ores Ltd:
Here are the key fundamentals for stock analysis of Sandur Manganese:
- Price to Earning Ratio is 22.4, lower than its sector PE ratio of 29.21.
- Stock Price rose 25.19% and underperformed its sector by 14.64% in the past year.
- Quarterly Revenue rose 40.82% YoY to ₹285.4 Cr. Its sector's average revenue growth YoY for the quarter was -2.18%.
- Quarterly Net profit rose 19.13% YoY to ₹32.14 Cr. Its sector's average net profit growth YoY for the quarter was 75.15%.
- Debt to Equity Ratio of 0.06 is less than 1 and healthy. This implies that its assets are financed mainly through equity.
- Return on Equity(ROE) for the last financial year was 11.09%, in the normal range of 10% to 20%.
- Mutual Fund Holding increased by 0.01% in the last quarter to 0.87.
- Promoter Share Holding stayed the same in the most recent quarter at 74.22%.
- Interest Coverage Ratio is 20.17, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).
- Promoter Pledges are zero.
About Sandur Manganese & Iron Ores:
SANDUR is the 3rd largest Manganese Ores miner in India and has been one of the most respected private-sector merchant miners for nearly 70 years. SANDUR has been receiving Five Star Rating Awards from the inception of this award by the Ministry of Mines, Government of India in 2014-15 and thereafter for all the years.
SANDUR has successfully established downstream processing facilities, including a ferroalloy plant, coke and captive power generation units to cater to the needs of India's bolstering steel, chemical, and allied industries. SANDUR is working tirelessly to set up its Steel plant in Vyasanakere, Karnataka.
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