Sandur Manganese
Stock Snapshot
Price Performance
Vista Outlook
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Management's recent commentary indicates a strong growth trajectory for Sandur Manganese, driven by the full utilization of expanded iron ore production capacity and strategic diversification into specialty steel through Arjas Steel. The anticipated commissioning of the Downhill Pipe Conveyor System and the recommencement of Coke Oven batteries are expected to enhance operational efficiency and energy generation, supporting Vista's forecast of improving margins and revenue growth. Despite a challenging environment for the Ferroalloys segment, initial recovery signs and improved domestic realizations provide a positive outlook. Vista's financial outlook reflects a strong balance sheet and a contrarian buy valuation, with expected upside driven by operational execution and market expansion. The non-ferrous metals industry is experiencing a growth phase, bolstered by rising demand and improving pricing power, which aligns with Sandur's strategic initiatives. Over the next 12-24 months, key opportunities include the successful ramp-up of production capacities and new customer acquisitions, while watchpoints include execution risks related to inventory management and market conditions for Ferroalloys
Why We Like This Stock
- Full utilization of expanded iron ore production capacity is expected to drive revenue growth
- Strategic diversification into specialty steel through Arjas Steel presents significant market expansion opportunities
- Management's focus on operational efficiency and renewable energy is likely to improve margins
Things To Watch Out For
- The Ferroalloys segment has faced challenging market conditions, which may impact short-term performance
- Execution risks related to managing existing iron ore stock and ramping up Coke Oven capacities could hinder growth
- Potential volatility in domestic realizations for Ferroalloys remains a concern
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,252 | 3,135 | 5,088 | 5,413 | 6,958 |
| Profit Before Tax (Cr.) | 310 | 590 | 859 | 810 | 1,074 |
| PBT Margin | 24.8% | 18.8% | 1688.3% | 15.0% | 15.4% |
| Net Profit (Cr.) | 224 | 449 | 783 | 648 | 858 |
| Earnings Per Share | 4.6 | 9.2 | 16.1 | 13.3 | 17.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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The Sandur Manganese & Iron Ores Limited, together with its subsidiary, engages in the mining of manganese and iron ores in Deogiri village of Ballari District, Karnataka. It operates through three segments: Mining, Ferroalloys, and Coke and Energy. The company also manufactures and sells ferroalloys and coke. In addition, it generates power through a 32-megawatt thermal power plant. The company serves steel manufacturers and ferroalloy producers. It also exports its products. The company was incorporated in 1954 and is based in Bengaluru, India. The Sandur Manganese & Iron Ores Limited is a subsidiary of Skand Private Limited.