Mukul Agrawal portfolio stock soars 9% in weak market; nears 52-week high

Sarda Energy & Minerals share price moved higher by 9 per cent to Rs 514.65 on the BSE in Monday's intra-day trade amid heavy volumes in an otherwise weak broader market.

Sarda Energy & Minerals (SEML) share price moved higher by 9 per cent to Rs 514.65 on the BSE in Monday’s intra-day trade amid heavy volumes in an otherwise weak broader market. The stock of the iron & steel company was trading at its highest level since December 26, 2024, when it hit a high of Rs 516.75 in intra-day trades. The stock hit a 52-week high of Rs 524.90 on October 15, 2024.

 

At 02:26 PM; SEML was quoting 7 per cent higher at Rs 505.25, as compared to 0.23 per cent decline in the BSE Sensex. The BSE Midcap and BSE Smallcap indices were down 1.4 per cent and 2 per cent, respectively.

 

Investor Mukul Mahavir Agrawal held 1.2 per cent or 4.18 million equity shares in SEML at the end of December 2024 quarter, the shareholding pattern data shows.

 

SEML is an energy and minerals company with operational iron ore and coal mines in Chhattisgarh and Thermal and Hydropower generation plants in different locations across India, with a growing portfolio of mineral and energy assets. It has a total operational Thermal Power capacity of 761.50 MW and Hydropower capacity of 141.80 MW. It is also an integrated steel producer of long steel products having a steel manufacturing facility at Raipur, Chhattisgarh and a leading producer and exporter of ferro alloys with manufacturing facilities at Raipur & Vizag.

 

For the first nine months (April to December) of the financial year 2024-25 (9MFY25), SEML has posted a healthy 38 per cent year-on-year (Y-o-Y) growth in its consolidated profit after tax (PAT) at Rs 602 crore. The company posted PAT of Rs 436 crore in 9MFY24. 

 

Revenue from operations grew 14 per cent Y-o-Y at Rs 3,404 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 38 per cent Y-o-Y to Rs 1,092 crore. Margins improved to 30.9 per cent in 9MFY25 from 25.3 per cent in 9MFY24.

 

With a robust presence spanning minerals, energy and metals, the management said the company is strategically positioned to capitalize on the emerging opportunities, particularly in the minerals and energy sector.

 

The group will continue to benefit from its established market position in key long steel products and ferro alloys, while the strategic acquisition of SKS Power is expected to further enhance its revenue diversification and operational integration, thereby ensuring healthy cash generation. The financial risk profile is likely to remain strong over the medium term, according to Crisil Ratings.

 

Healthy operating performance with continued volume growth in metals business supported by high-capacity utilisation and operating margin of more than 25 per cent due to increased integration, leading to significant and sustained improvement in scale of operations as well as net cash accrual. The company’s significantly higher-than-expected operating cash accrual from SKS Power on sustained basis, driven by the addition of long-term PPAs at remunerative tariffs and low cost of generation, supporting Plant Load Factors (PLFs) of more than 60-65 per cent, rating agency said.

 

Last week, CARE Ratings upgraded the bank facilities of SEML’s subsidiary Madhya Bharat Power Corporation Limited (MBPCL), which is operating a 113-MW run-of-the-river hydroelectric power project in Sikkim. The rating agency said upgrade factors in the healthy track record of ~4 years with satisfactory operational performance and timely collections.

 

The company reported PLF of 40.0 per cent in FY24 against 43.8 per cent in FY23. The average PLF in 9MFY25 was ~51 per cent which is in line with 9MFY24 performance. This apart, the plant has been consistently meeting its designed energy (38 per cent) and Normative Annual Plant Availability Factor (NAPAF) requirements of 78 per cent since it was commissioned in June 2021. The company achieved a PAF of 82 per cent in FY24 and a higher PAF of 94 per cent in 9MFY25. Going forward, CARE Ratings expects generation and PAF to remain in line with the historical trend.

 

The stable outlook reflects MBPCL’s ability to sustain its financial credit due to its stable returns through long-term PPA, steady generation and collection profile as well as the benefits accruing from being part of the Sarda Group, the rating agency said.