5:1 Bonus Issue: 1200 Shares Of This Smallcap Metal Stock Gets 6000 Bonus Shares; Up 100% In 6 Months

Sandur Manganese & Iron Ores is in focus for its Q3 results for FY24, and allotment of bonus shares in the ratio of 5:1. Simply put, the company is giving 5 additional shares against 1 existing share. Sandur Manganese is a multi-bagger with gains of over 105% in six months.

Sandur Manganese & Iron Ores Share Price:

On Thursday, Sandur Manganese's share ended at Rs 546.80 apiece, down by 4.3% with a market cap of Rs 8,860.07 crore.

The company's 52-week high and low is at Rs 613.45 apiece, and Rs 142.32 respectively.

The company is trading higher by 284.20% from its 1-year lows.

Sandur Manganese & Iron Ores Bonus Issue:

On February 7, the company received an in-principle approval for listing of 13,50,29,115 Equity shares of Rs. 10/- each issued to the shareholders of the company as bonus in the ratio of 5 additional equity shares for every 1 equity shares held bearing distinctive numbers from 2,70,05,824 to 16,20,34,938.

Sandur turned ex-bonus on February 2nd, which is also its record date or the purpose of determining the shareholders and their entitlement to issue and allotment of Bonus Equity Shares in the ratio of 5:1. As per the regulatory filing, the Bonus Equity Shares shall be allotted to the equity shareholders whose names appear in the Register of Members of the Company and the beneficial records of the Depositories as of the said date.

So let's assume, an investor holds 1200 shares of Sandur Manganese by the end of February 2nd, then, he or she will get bonus shares up to 6,000 shares (1200 X 5/1). This will total your shareholding to 7,200 equities in Sandur.

Sandur Manganese & Iron Ores Q3 Results:

The company announced its Q3 results on February 8. The company reported a net profit of Rs 9.07 crore on a consolidated basis, down from profits of Rs 41.41 crore in Q3 of the previous fiscal and Rs 26.98 crore in Q2FY24. Consolidated revenue stood at Rs 153.02 crore in Q3FY24, compared to Rs 387.92 crore in Q3FY23 and Rs 164.81 crore in Q2FY24.

During the performance, in its management commentary, Bharija Ghorpade, Managing Director said on the company's mining business, "The production of both manganese and iron ores has remained in line with our quarterly production trends. Sales volume for iron ore has been lower in Q3, as the Company was strategically exploring opportunities to export the iron ore which would fetch better realisation. In a significant milestone, the Company has commenced its first export order in Q4FY24 and has already moved some more inventory to the port for further export shipments." He added, "We have been evaluating opportunities in export markets ever since the Hon'ble Supreme Court lifted export restrictions on iron ore from Karnataka in May 2022. However, the markets were not favourable for exports earlier."

In the case of Coke and Energy, Ghorpade added, "Volatility in the coking coal segment continues with fluctuations in the pricing of raw materials. Continuing with its cautious stance in this segment, the Company has curtailed volumes in this segment. Higher volumes have been registered under contract manufacturing arrangements during the quarter, thus limiting exposure to market price fluctuations whilst maintaining production levels."

On mining expansion, the MD pointed out that after receiving Environmental Clearance on 25 April 2023 from the Ministry of Environment, Forest & Climate Change (MoEFCC) and Consent for Establishment (Expansion) on 4 September 2023 from Karnataka State Pollution Control Board (KSPCB) for enhancement in manganese and iron ore production and setting up a beneficiation plant along with Downhill Conveyor System (DCS), the Company has on 2 February 2024 received Consent For Operation (CFO) from KSPCB for enhancement in manganese ore production from 0.286 to 0.46 Million Tonnes Per Annum (MTPA) and iron ore production from 1.60 to 3.81 MTPA.

Finally, the MD added, "Tepid demand scenario continues in the ferroalloy industry coupled with a further decline in realisations during Q3. Market fluctuations continue to be the primary headwind for the ferroalloy industry. However, for the Company, volumes have witnessed a recovery on both YOY and QOQ basis. We are hopeful of a better demand scenario in the coming financial year."

The Company is one of the largest Manganese Ore miners in India. At present, the Company's operations span over three business segments i.e., Mining (Manganese & Iron Ores), Ferroalloys and Coke & Energy. Together, these assets work in conjunction with each other to leverage the benefits of being an integrated Company in the metals and mining industry.

Disclaimer: The stock just highlights the bonus issue and financial performance, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.