Prakash Industries climbed 3.14% to Rs 42.65 after the firm emerged as the highest bidder for the Bhaskarpara Coal Mine in Chhattisgarh.
Prakash Industries had participated in the 8th tranche of coal blocks auction conducted by Ministry of Coal and had emerged as the highest bidder for the Bhaskarpara Coal Mine in Chhattisgarh.
The company on Wednesday, 11 December 2019, received a communication from the Ministry of Coal, Government of India, declaring the company as the successful bidder for the coal mine.
The company is now required to execute the coal mine development and production agreement with the Ministry of Coal, subsequent to which the vesting order will be issued to the company. Availability of coal from the Bhaskarpara Coal Mine will substantially enhance the operating margins of the company. The announcement was made after market hours yesterday, 11 December 2019.
Shares of Prakash Industries dropped 7.39% in the past two trading sessions to settle at Rs 41.35 yesterday, 11 December 2019, from its close of Rs 44.65 on 9 December 2019.
Meanwhile, the S&P BSE Sensex was up 139 points or 0.34% to 40,551.44.
On the technical front, the stock's RSI (relative strength index) stood at 40.497. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading below its 50-day moving average (DMA) placed at Rs 46.169, as well as below its 200 DMA placed at Rs 61.714.
Prakash Industries' net profit tumbled 74.7% to Rs 33.14 crore on 19.8% decline in net sales to Rs 762.30 crore in Q2 September 2019 over Q2 September 2018.
Prakash Industries is engaged in the production of ferro alloys, MS TMT/MS Coil and allied products, HB wire rod and PVC pipe and sockets. The firm's segments include power, steel and PVC pipe. The company's product range includes sponge iron, power, wire rod, thermo mechanically treated (TMT) bars and rigid polyvinyl chloride (PVC) pipes.
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