One can assume between Rs1000-1500/t of coal as cost saving for the company.
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Sir, How big do you see the opportunity from selling the coal in the open market?
See it doesn’t matter whether u sell in open market or use yourself. The mine production capacity is well defined. And unlike iron ore, it’s not that easy to increase production of coal. So one need to assume they will produce at full capacity and sell the surplus. Benefit will remain the same
3 Likes
@Rakesh_Arora Sir, they have availability of coal linkage also. So can Prakash continue getting supply under linkage for its captive use and simultaneously sell commercial coal in market from its mine.
Kindly also advise your views on the management and Company as a whole and also about market perception for the Company.
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Overall profitability of the company is not great. Iron ore mine benefit is already in the numbers, Coal will be additional. Company can go to Rs600-700cr EBITDA range. Confidence level on management is low and market perception is not that great. Stock can go up further as markets are being crazy. Personally I think there are better stories in the market.
7 Likes
Why screener is showing Zero Taxes paid in Profit & Loss statement for each year. For FY24 its negative . Any idea why is so ?
19f4842d-28aa-4d83-9482-dc5d0006a0fc.pdf (2.0 MB)
good numbers from prakash ind.
but the key questions are 1) why they r not paying taxes? 2) where this all profits are going because they r earning and spending on assets …? 3)which types of assets and why they are buying i cant undesrstand if you looks at GPIL or Sharda , they r very much transparent in all manners…‘’
Disc . :- Invested
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What’s the reason for such a sharp fall…
The Company is pleased to inform that the Government of Chhattisgarh vide its order
dated 13th November, 2024 has approved Mining Lease over an area of 932 hectares for
mining of coal over a period of 30 years for its Bhaskarpara Commercial Coal Mine in
District Surajpur.
The supplies of coal from this mine shall provide stability to the Company’s Integrated Steel operations as well as result in significant cost reductions. Additionally, this being a commercial mine, it shall also boost the revenue and the profitability through sale of coal in the open market.
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The Company is pleased to inform that the Government of Chhattisgarh had executed the
Mining Lease yesterday, which has been duly registered today in favour of the Company
for mining of coal over a period of 30 years for its Bhaskarpara Commercial Coal Mine in
District Surajpur. Now, the Company will start overburden removal by next month and
thereafter the coal extraction is expected to commence in the next quarter.
The supplies of coal from this mine shall provide stability to the Company’s Integrated
Steel operations as well as result in significant cost reductions. Additionally, this being a
commercial mine, it shall also boost the revenue and the profitability through sale of coal in
the open market.
The Company has already started the mining operations at its Bhaskarpara Coal Mine and
currently overburden removal is in progress. The extraction of coal from the mine is likely to
start in the next fortnight. The supplies of coal from the mine shall result in substantial cost reductions and efficiencies in its Integrated Steel Plant operations. This being a commercial mine, the Company will further benefit from sale of coal in the market, thereby resulting in higher profitability.
Company is expected to report good numbers in coming quarters.
Disclosure: Invested
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But under which scheme they r not paying income tax…
And there are other corporate governance issues also…
Disc. Sold off
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What other governance issues, could you please explain , if possible
yes from this qtr results we can see substantial improvement in ebitda margins as per my estimates it should be north of 18% one should hold with patience in next 1-2 yrs this stock can give good returns..also dolly khanna and mukul agarwal has further added stake in this qtr this should also be positive for the stock..
invested so my views may be biased
5 Likes
Weak Nos
Dont understand how other expenses have increased by 50%?
Is it a one off or will the norm going forward
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Is there any source where I can find Sponge Iron V/s Finished Steel Volume Mix and Capacity Utilisation %?
i am tracking this stock since 2021 and now it will be on track
1)Long due Coal mine production started
2)they have huge asset base and high backward integration will perform well if steel cycle turned up, which seems to be likely.
3)on negative side promotors are always fishhy why they are not paying taxes and why they have huge intercompany transactions (i read somewhere they r selling finished products to their own firms and then it will resale with good margins).
4)but the entry of mukul and dolly gives me comfort and faith about promotors integrity and corporate governance.
sorry for typo eror…
Disc. Recently added.
Is there any news by the management about further expansion and capex, of opening any new plants??
may be its due to new coal mine which they have recently started..regarding this additional 50 crore more other expense will it be a new nomal? i dont think so..may be some 1 time expense due to this new operations
Can anyone explain reason given by management for the drop in topline is valid…?
They r claiming extended monsoon disturbed their quarterly numbers!?
Disc. Invested