Sandur Manganese & Iron Ore Ltd

Sandur Manganese & Iron Ore Ltd
Mining
FV – Rs 10; 52wks H/L – 937.7/490; TTQ – 26 K; CMP – Rs 800 (As On June 21, 2017);                      

            Market Cap – Rs 691 Crs

Consolidated Financials and Valuations for FY17 (Amt in Rs Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
8.75 415 – 429 54.4 474 62.2 12.9 10.17 1.7 72.43 1.99

 

Consolidated Financials and Valuations for FY16


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
8.75 364 – 275 7.39 416 8.44 94.8 10.17 1.9 72.43 1.99

 

Valuation Parameters:

  1. Long Term Debt to Equity – NIL
  2. ROE % – 13
  3. Market Cap/Sales – 1.61

JSW Steel in talks with Sandur Manganese for long-term iron ore supply. “We are going to have a long-term tie-up with them (Sandur Manganese) for supply of iron ore. They have a capacity of 1.6 mt now, but they can reach up to 3 mt,” Vinod Nowal, deputy managing director of JSW Steel, told Reuters. http://economictimes.indiatimes.com/industry/indl-goods/svs/steel/jsw-steel-in-talks-with-sandur-manganese-for-long-term-iron-ore-supply/articleshow/52330256.cms

Hope to clear 1.6 MT of iron ore production: Sandur Manganese

The company will have a turnover of around Rs 200-300 crore in FY17, says Ghorpade. The company was plagued with the same issue last fiscal when its turnover for manganese was Rs 17 crore and 47 crore for iron ore. http://www.moneycontrol.com/news/business/earnings-business/hope-to-clear-16-mtiron-ore-production-sandur-manganese-935252.html

Overview:

  • The Sandur Manganese & Iron Ores Limited is engaged in the mining of manganese ore and iron ore, and the manufacture of ferro-alloys.
  • The Company’s segments include Mining, Ferroalloys & Power, and Steel.
  • The Company’s mines are locate at Deogiri, SB Halli and Ramgad located around Sandur, and its Metal and Ferroalloy plant is located at Vyasankere.
  • The Company is a subsidiary of Skand Pvt. Ltd.
  • Star Metallics and Power Private Limited (SMPPL), a subsidiary of the Company, which has two ferroalloy furnaces and a 32 MW thermal power plant which is used as a captive unit for its ferroalloy operations. In pursuance of lease agreement executed on 1 February 2016 with its subsidiary, the Company has taken both the ferroalloy plant and thermal power plant on lease.

Management:

  • S. Y. Ghorpade – CMD
  •  K. Raman – CFO

Major Non – Promoter Holdings:

Non – Promoters No. of shares held % of shares held
Sagar Mal 149135 1.7
Madhuri Omprakash Damani 100650 1.15

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY17 FY16 FY15 FY14 FY13 FY11
Equity Paid Up 8.75 8.75 8.75 8.75 8.75 8.75
Networth 415 364 359 337 301 286
Total Debt – 25  – – –  –
Net Sales 429 275 356 347 219 367
Other Income 5 6 5 18 10 4
PAT 54.4 7.39 25.48 36.81 24.93 232.89
Book Value (Rs) 474 416 410 385 344 327
EPS (Rs) 62.2 8.4 29.1 42.1 28.5 266.2

 

Production of manganese ore and iron ore during the financial year 2015-16 was 151289 tonnes and 739744 tonnes respectively as against 160909 tonnes and 516285 tonnes produced during the previous year. Excluding the ores salvaged from dumps, the Company sold 112277 tonnes of manganese ore and 884292 tonnes of iron ore during the year under review.

During the year under review, 6757 tonnes of Silico manganese was manufactured and 9905 tonnes were sold resulting in a negative contribution of 1131.77 Lakh.