This Dolly Khanna-owned iron & steel stock has zoomed over 100% in 3 months

Shares of Prakash Industries rallied 9 per cent on the BSE to hit a multi-year high of Rs 174.80 in Wednesday’s intra-day trade amid heavy volumes. In the past three days, the stock of the iron & steel company has surged 25 per cent. It was quoting at its highest level since June 2018.

The average trading volumes on the counter doubled today. A combined 5.42 million equity shares, representing 3 per cent of the total equity of Prakash Industries, had changed hands on the NSE and BSE.

In the past three months, the stock price of Prakash Industries has more than doubled or zoomed 119 per cent. Thus far in the calendar year 2023, it has skyrocketed 220 per cent as against a nearly 9 per cent rise in the S&P BSE Sensex.

Investor Dolly Khanna held 1.8 million or 1 per cent of the total equity of Prakash Industries as of the end of September 2023. This stake was below 1 per cent at the end of June 2023 quarter, the shareholding pattern data shows.

Last month, the Ministry of Environment, Forest and Climate Change, Government of India had granted an environmental clearance (EC) for the company’s Bhaskarpara Commercial Coal Mine in Chhattisgarh.

Prakash Industries had said the development of the said mine is fast in progress and the mining lease is likely to be executed by the current quarter.

The supplies of coal from this mine shall provide stability to the company's integrated steel operations as well as significant cost reductions. Further, this being a commercial mine, it shall also boost the revenue and the profitability through sale of coal in the open market.

Prakash Industries is primarily engaged in the business of manufacture and sale of steel products and generation of power. The company has its manufacturing facilities in India and sells products in India.

The Indian steel industry outlook looks promising with the country gearing to become a $5 trillion economy by 2030 and as per market reports, the domestic steel industry will play a pivotal role in steering India towards its goal.

"Recent changes in export taxes and import duties on steel, complemented by the rising demand for affordable housing, infrastructure development and construction projects, will lead to a panIndia need for steel. Also, an investment of Rs 75,000 crore is planned for 100+ critical transportation infrastructure projects to connect ports, coal, steel, fertiliser, and food grain sectors across the first- and last-mile delivery network, which shall in turn lead to a rise in demand for steel", Prakash Industries said in its FY23 annual report.

In addition, urban planning development projects are planned to be undertaken to transform cities into sustainable cities in Tier II and Tier III category of states with proposed Rs 10,000 crore annual fund, which shall also lead to demand for steel, the company said.