Shares of Sarda Energy and Minerals Limited (SEML) surged on Wednesday, September 25, 2024, as the company received a crucial nod to expand its coal production. The stock climbed by 5.96%, reaching an all-time high of ₹467 per share, signalling investor confidence and optimism in the company's growth trajectory.
Expansion boosts share market investment interest
The rally in Sarda Energy's share price was driven by the approval from the Chhattisgarh Environment Conservation Board to increase coal production capacity from 1.44 MTPA to 1.68 MTPA at its Gare Palma IV/7 Coal Mine. This expansion is a significant step for the company, as it enhances its resource base, making it a more attractive option for share market investment.
The company's exchange filing highlighted the approval under key environmental regulations, including the Water (Prevention and Control of Pollution) Act and the Air (Prevention and Control of Pollution) Act. Investors view this development as a potential revenue booster, further strengthening SEML's position as one of the lowest-cost producers in the steel and energy sectors.
A strong track record in energy and minerals
Founded in 1973, Sarda Energy & Minerals Limited has a long-standing presence in steel, ferroalloys, and power generation. The company has expanded its portfolio to include mining and the production of eco-friendly bricks. Over the years, SEML's commitment to high-quality products and ethical business practices has made it a preferred supplier across more than 60 countries.
Listed on the Bombay Stock Exchange and National Stock Exchange, SEML's market capitalisation stands at ₹16,079.16 crore, a notable figure in the share market investment landscape. As SEML continues to grow, this recent coal production expansion is likely to attract more investors looking for long-term value.
Key takeaways
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