Prakash Industries surges 8% on getting final nod for Bhaskarpara coal mine

Shares of Prakash Industries zoomed up to 7.9 per cent at Rs 208.95 per share on the BSE in Friday’s intraday trade. This came after the company on Thursday announced that it has received the final approval for Bhaskarpara commercial coal mine in Chhattisgarh.

After getting the stage-one approval on 21st August, 2023, the company said that it has got the Final I Stage-II approval under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 from the Union Ministry of Environment, Forest and Climate Change. 

“As informed earlier, the permission to establish is already in place from the Chhattisgarh Environment Conservation Board and the development of the mine is progressing fast. The mining lease is now expected to be executed by next month,” the company said in an exchange filing 

The company further added that the supplies of coal from this mine shall provide stability to the company's integrated steel operations as well as result in significant cost reductions. 

Prakash Industries reported net sales of Rs 890.44 crore in January-March quarter of fiscal year 2023-24 (Q4FY24), marking a decrease of 11.88 per cent from Rs 1,010.54 crore in March 2023. 

However, the quarterly net profit for Q4FY24 stood at Rs 88.77 crore, showing a significant increase of 53.16 per cent compared to Rs 57.96 crore in March 2023. 

Additionally, earnings, before, interest tax, depreciation and amortisation (Ebitda) for March 2024 stood at Rs 133.97 crore, up by 19.79 per cent from Rs 111.84 crore in March 2023.

The smallcap firm has a total market capitalisation of Rs 3,581.64 crore. The company shares are trading at a price to earnings multiple of 9.95 with an earning per share of Rs 19.44. 

At 02:51 PM; the stock of the company pared some of its gains and was trading 3.36 per cent higher at Rs 200 per share on the BSE. In comparison the BSE Sensex rose 0.93 per cent to 80,643 levels.

Prakash Industries, a part of the Surya Roshni group, operates across multiple industries including coal, sponge iron, iron ore mining, steel product manufacturing, and power generation.