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Sarda Energy & Minerals
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Sarda Energy & Minerals Ltd (Formerly known as Raipur Alloys & Steel Ltd) was established on June 23, 1976. Led by the Tejpaul Group, the Company has integrated steel manufacturing unit with facilities, ferro alloys backed by captive thermal power plant and is presently, engaged in metal, mining and power sector.It operates in the hydropower projects through SPVs.
The Sanda Group purchased it in 1979 and renamed it Raipur Alloys & Steel in 1985. The Group produces sponge iron, for its captive use to convert it into rolled products for sale. The company came out with an issue of fully convertible debentures in Dec.'92 to part-finance the sponge iron project and meet part of the long-term working capital requirements. The products of the company, mild steel and carbon steel billets, are used by re-rollers.
To make its sponge iron plant self-sufficient, it has identified areas in Madhya Pradesh having good deposits of iron ore and has applied for leases in these areas. This will reduce the cost of iron ore, resulting in a lower cost of sponge iron. The company started commercial production in the second kiln in its sponge iron plant, from Sep.'95.
During 1997-98, the Indian Bureau of Mines, Govt. of India has granted its approval to the company for mining lease in 100 hectares in Dongarbor in Rajnandgaon district of M.P. In 1998-99, the Company applied for additional area of about 125 Hectares for iron ore mining and expects to get Prospecting License in the near future. It has received mining lease for iron ore in 2001-02. The company has planned for major expansion of both sponge iron and Steel in the near future.
With the prior approval the company has alloted 65,40,000 Equity shares on preferential basis to promoters as per SEBI regulations.
In 2006-07, the merger of Chhattisgarh Electricity Company Ltd. and Raipur Gases Pvt. Ltd. with the Company became effective from 1st April 2006. As a result, name of the Company was changed from Raipur Alloys & Steel Limited to Sarda Energy & Minerals Limited.
During 2007, the company promoted a joint venture company M/s. Madanpur South Coal Company Limited, an SPV, for mining of coal block allotted in consortium, where the Company got a share of 36 million tonnes. The Company issued 4473684 Equity Shares of Rs. 10/- each at a premium of Rs.180/- per share on preferential basis to LB India Holdings Mauritus II Ltd. (LB) and Infrastructure Development Finance Company Ltd. (IDFC), thus raising Rs.85 crores to part finance the expansion projects.The Company also issued 263158 Equity Share Warrants, which entitles the warrant holder to subscribe one equity share for each warrant at the same price at which shares have been issued on preferential basis.
Sarda Energy & Minerals Hongkong Ltd, Hongkong (SEMHK), a wholly-owned subsidiary of Company, was incorporated in the year 2007 as international trading and investment arm of the Company.
The Company in 2008 enhanced steel production capacity from 1,40,000 TPA to 2,40,000 TPA by installation of two more induction furnaces. Sponge iron production capacity; sponge iron production capacity also enhanced from 2,10,000 TPA to 3,60,000 TPA by installation of one more kiln of 500 TPD, which has commenced trial runs. In 2008, the Company incorporated a wholly-owned subsidiary in Hong Kong in the name and style of Sarda Energy & Minerals Hong Kong Limited' (SEMHL). It also incorporated a wholly-owned subsidiary in Singapore under the name and style of Sarda Global Venture Pte Limited' ((SGV) for business related acquisitions. The subsidiary acquired economic interest in coal mines in Indonesia.
During 2008-09, Company commissioned second 500 TPD sponge iron plant and third turbine of 30 MW capacity and 90 TPH FBC boiler at the existing site. It started work on installation of 1 MT coal washery in coal mines to make it suitable for use in sponge iron plant. The Company installed manganese (Mn) ore sinter plant of 6 lakhs TPA capacity in its ferro alloys plant at Siltara, Raipur, to use more Mn ore fines in production of ferro alloys.
In 2010, additional power generation capacity of 20 MW became operational in December 2010. Wire Rod Mill also became operational during 2010. Coal washery started their operation. The 1.8 lac tones Wire Rod Mill at Siltara, Raipur, started commercial operations from 01.01.2011. Wire drawing facility commenced operation; the 0.96 million tonne coal washery was commissioned in the financial year 2010. The Company acquired sufficient land for the proposed 350 MW thermal power project at Kolam, Raigarh near its captive coal mines; the second phase of the Iron Ore Sizing & Screening plant of 6 LTPA commissioned on 31.08.2010. Pellet plant commenced commercial operation from April 01, 2010.
During 2009-10, the Company acquired majority control in two entities, to undertake hydro power business and an LLP to undertake thermal power plant, which increased the total no. of subsidiaries / controlled entities of the Company rose from 7 to 9.
The Wire Drawing Mill, Coal Washery and 2nd Bricks plant were commissioned costing Rs 4,163.93 Lacs during 2012.
Natural Resources Energy Pvt. Ltd. became subsidiary of the Company during 2013. Further, the Company made fresh investments for acquiring 29.98% in Godawari Natural Resources Limited for participation in the auction of coal mines.
In Mar' 18, the Company commissioned replacement of second energy turbine and operated the iron ore mine.
During 2019-20, there was an increase of 3.61% in the stake of Company in Madhya Bharat Power Corporation Limited due to further infusion of equity capital towards commitment in the project cost. The Company made further investments directly and through its wholly owned Subsidiary, Sarda Energy Limited to acquire 100% stake in Chhattisgarh Hydro Power LLP; it infused further equity in overseas subsidiaries, namely Sarda Global Venture Pte. Limited and Sarda Global Trading, DMCC.
During the year 2021-22, the Company commissioned commercial operation of 113 MW Hydropower Project in Sikkim from June 30, 2021 and the production of coal mine commissioned at Raigarh in January 2022.
Sarda Energy & Minerals share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Sarda Energy & Minerals indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Sarda Energy & Minerals is valued compared to its competitors.
Sarda Energy & Minerals PE ratio helps investors understand what is the market value of each stock compared to Sarda Energy & Minerals 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Sarda Energy & Minerals evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Sarda Energy & Minerals generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Sarda Energy & Minerals in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Sarda Energy & Minerals shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Sarda Energy & Minerals compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Sarda Energy & Minerals over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Sarda Energy & Minerals helps investors get an insight into when they can enter or exit the stock. Key components of Sarda Energy & Minerals Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Sarda Energy & Minerals shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Sarda Energy & Minerals ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Sarda Energy & Minerals provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Sarda Energy & Minerals highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Sarda Energy & Minerals .
The balance sheet presents a snapshot of Sarda Energy & Minerals ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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