Sarda Energy hits new high, gains 4% on fixing record date for stock split

Shares of Sarda Energy & Minerals hit a new high of Rs 1,664.20, gaining 4 per cent on the BSE in Tuesday's intra-day trade, after the company fixed August 4, 2023 as the record date for 1:10 stock split.

"Friday, August 4, 2023, has been fixed as the "Record Date" for the purpose of sub-division / split of existing equity shares of the Company from one equity share, having face value of Rs 10 each fully paid-up, into 10  equity shares having face value of Re  1 each fully paid-up," Sarda Energy said in an exchange filing.

At 12:15 pm, the stock was trading 3 per cent higher at Rs 1,645, as compared to 0.07 per cent rise in the S&P BSE Sensex.

Since May 27, the day the Board approved the stock split decision, the stock price of the company has appreciated by 47 per cent.

On rationale behind the split, Sarda Energy said it intends to enhance the liquidity in the capital market, widen shareholder base, and make the shares more affordable to small investors.

In the past one year, the stock has zoomed 90 per cent as compared to 22 per cent rally in the benchmark index. While it has akyrocketed 1,609 per cent from its March 2020 low of Rs 97.40 on the BSE.

Sarda Energy & Minerals is an integrated steel producer of long steel products having steel manufacturing facility at Raipur, Chhattisgarh. It is also a leading producer and exporter of ferro alloys with manufacturing facilities at Raipur & Vizag. It also has interests in hydropower sector through various SPVs and also operates a commercial coal mine and captive iron ore mine at CG.

Meanwhile, for the financial year 2022-23 (FY23), the company had posted 25 per cent year-on-year (YoY) decline in its consolidated profit after tax at Rs 604 crore, as compared to Rs 807 crore in FY22. Revenue from operations grew 8 per cent YoY at Rs 4,212 crore, as against Rs 3,914 crore in the previous year. Operating earnings before interest, taxes, depreciation, and amortization (ebitda) was down 21 per cent to Rs 1,052 crore, while margin contracted to 24.97 per cent from 35.74 per cent in FY22.