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Ashapura Minechem hits upper circuit for 3rd day; stock zooms 100% in 7 wks

For the April-June quarter (Q1FY21), the company had reported standalone profit before tax (PBT) of Rs 9.23 crore against Rs 1.15 crore in the year-ago quarter.

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Buzzing stocks | Markets | mining sector

SI Reporter  |  Mumbai 

iron ore mine
Till 02:28 pm, a combined 196,000 equity shares had changed hands and there were pending buy orders for 209,545 shares on the NSE and BSE. (Representative image)

Shares of Ashapura Minechem (AML) were frozen at the upper circuit limit for the third straight day on the BSE on Thursday. The stock was up 5 per cent at Rs 82.75, also its 52-week high, in an otherwise weak market. In the past seven weeks, the stock of the mining company has seen its share price more than double after it reported strong operational performance for the June quarter of the current fiscal (Q1FY21).

Since July 31, shares of AML have rallied 128 per cent from the level of Rs 36.25, as compared to a 3.4 per cent rise in the S&P BSE Sensex. Till 02:28 pm, a combined 196,000 equity shares had changed hands and there were pending buy orders for 209,545 shares on the NSE and BSE, exchange data shows.

For the April-June quarter (Q1FY21), the company had reported standalone profit before tax (PBT) of Rs 9.23 crore against Rs 1.15 crore in the year-ago quarter. On a consolidated basis, it reported PBT of Rs 35.10 crore on revenue of Rs 294 crore.

AML said the increase in revenues and profits of the group was attributed to the commencement of ore exports from Guinea and a resilient performance by Bentonite, Bleaching Clay, and Advanced Refractory Solutions divisions despite the incidence of the Covid-19 pandemic.

As on date, AML has entered into amicable settlements for all the litigations/claims apropos shipping and foreign exchange derivative contracts which were pending against the company for over ten years.

AML has ceased to be in the National Company Law Appellate Tribunal (NCLAT), since October 2019. As on June 30, 2020, the net worth of the company on a standalone basis has become positive i.e. Rs 6.12 crore whereas on a consolidated basis it stands at Rs 382.82 crore.

Ashapura Guinea Resources SARL (AGRS), a wholly-owned step-down subsidiary of AML, expects to export approximately 2 million tons of ore in FY20-21. The Ashapura Group has access to a large resource base of minerals that offers an unfettered and sustainable supply of mineral under all applicable mining and environmental regulations, the company said.

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First Published: Thu, September 17 2020. 14:32 IST
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