Energy Stock Okays 5:1 Bonus Shares: Buy The Stock To Be Eligible?

The Sandur Manganese & Iron Ores Limited is a mid-cap company in the energy sector with a market cap of Rs 6,746.05 Cr on Wednesday's closing session. With a long history and more than 65 years of expertise, the firm is one of India's most integrated and diverse commodities producers. Subject to shareholder approval, the corporation has announced bonus shares in a 5:1 ratio.

Sandur Manganese & Iron Ores Bonus Shares

The Board of Directors of the company considered and approved the "Issue of Bonus Shares to the equity shareholders of the Company in the ratio of 5:1 i.e., 5 (Five) new fully paid-up Equity Shares of Rs 10/- (Rupees Ten) each for every 1 (One) existing fully paid up Equity Share of Rs 10/- (Rupees Ten) each held by the eligible shareholders as on the Record Date (to be determined by the Board and to be intimated to the Exchanges in due course) upon obtaining approval of the shareholders," said The Sandur Manganese & Iron Ores Limited in a stock exchange filing.

13,50,29,115 equity shares of Rs 10/- each amounting to Rs 1,35,02,91,150/- are the total number of securities proposed to be issued or the total amount for which the securities will be issued as a part of the bonus shares. The company will credit the bonus shares to the eligible shareholders within 2 months from the date of Boards' approval i.e., on or before 16 February 2024, as per a regulatory filing.

Sandur Manganese & Iron Ores Financials

On a consolidated basis, the company recorded a net income of Rs 202.62 Cr during the September 2023 quarter compared to Rs 496.32 Cr in the September 2022 quarter. Its net expenses reached Rs 161.76 Cr which was Rs 459.64 in the year-ago quarter. The company's EBIT stood at Rs 40.86 Cr in Q2FY24 compared to Rs 36.68 Cr in Q2FY23. Sandur Manganese & Iron Ores said its net profit reached Rs 26.98 Cr in the second quarter of the current fiscal which was Rs 21.88 Cr in the same quarter of FY23.

Sandur Manganese & Iron Ores Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "SANDUMA, currently trading at Rs 2640, stock continuously forming new higher high higher low on daily chart indicate strong uptrend with good volume, with expectations of further upward movement towards the Rs 2905 levels.

On the downside, substantial support is evident near Rs 2400. Furthermore, SANDUMA is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 85, signalling an upward trajectory and confirming an increase in buying momentum."

"Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively support the notion that SANDUMA may have the potential to achieve a target price of Rs 2905 & Rs 3400 in the near term. To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 2400 to protect the investment in case of an unexpected market reversal.

A prudent strategy involves considering buying opportunities on market dips at levels of Rs 2500. In summary, considering the technical analysis and prevailing market conditions, SANDUMA appears to present a promising buying opportunity for those targeting a Rs 2905 & 3400 price objective, contingent upon the implementation of prudent risk management measures," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.