Sarda Energy and Minerals saw a sharp rise in its share price on 25 November 2024. The company’s stock surged up to 7.16%, reaching an intraday high of ₹443.65 per share. This movement came following the announcement that Sarda Energy had been declared the preferred bidder for the Gare Palma IV/5 coal mine in Raigarh, Chhattisgarh.
Investors exploring share market investment opportunities often consider such developments in the energy and mining sectors.
Details of the Gare Palma IV/5 coal mine bid
The Gare Palma IV/5 coal mine in Raigarh is allocated on a 25.75% revenue-sharing basis with the state government. The mine holds coal with a provisional grade of G8, adding to its commercial significance. The announcement of Sarda Energy’s preferred bidder status marks a milestone for the company’s growth strategy, offering insights for those monitoring share market investment options in resource-based sectors.
Sarda Energy’s corporate overview
Founded in 1973, Sarda Energy and Minerals Limited (SEML) is a key player in India’s energy and mineral sectors. Based in Raipur, Chhattisgarh, the company produces steel, ferro alloys, and power, positioning itself as one of the country’s most cost-effective producers. It has a diversified portfolio, which includes sponge iron, billets, eco-friendly bricks, mining, and power generation.
The company expanded its operations in 2007 through a merger with Chhattisgarh Electricity Company Limited. Sarda Energy has also established a strong international presence, supplying products to over 60 countries. Such milestones highlight its prominence in the share market investment landscape.
Stock market performance of Sarda Energy
The company has seen significant growth in its share price over the year. Year-to-date, Sarda Energy’s stock has gained over 69%, significantly outperforming benchmark indices. For comparison, the BSE Sensex has gained approximately 11% in the same period. As of 10:01 AM on 25 November 2024, Sarda Energy shares were trading at ₹431.75, up 4.29%. Investors exploring share market investment options may find this consistent growth noteworthy.
Financial metrics and market capitalisation
Sarda Energy and Minerals is listed on both the Bombay Stock Exchange and the National Stock Exchange of India. Its current market capitalisation stands at ₹15,198.21 crore. Falling under the BSE SmallCap category, the company has consistently delivered value to its shareholders, which can serve as a point of consideration for those evaluating share market investment opportunities.
Impact of Raigarh coal mine on Sarda Energy
The Gare Palma IV/5 coal mine is expected to contribute significantly to Sarda Energy’s operational portfolio. As a preferred bidder, the company gains access to high-grade coal resources, which can enhance its production capabilities and cost efficiency. Such expansions in resource assets often play a pivotal role in influencing share market investment decisions.
For android only