Prakash Ind shares fly 7% on securing 30 yr mining lease in Chhattisgarh

Shares of Prakash Industries climbed up to 7.59 per cent at Rs 175 a on the BSE in Monday’s intraday deals after the company on Friday announced that the Government of Chhattisgarh had executed a mining lease in favour of the company. 

 

“Mining Lease has been duly registered in favour of the Company for mining of coal over a period of 30 years for its Bhaskarpara Commercial Coal Mine in District Surajpu, Chhattisgarh.  Now, the Company will start overburden removal by next month and thereafter the coal extraction is expected to commence in the next quarter,” the company said in an exchange filing. 

 

 

The company further said 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. Additionally, this being a commercial mine, it shall also boost the revenue and the profitability through sale of coal in the open market. 

 

Prakash Industries has been engaged primarily in the business of manufacture and sale of steel products and generation of power.

Q2 results

Prakash Industries reported a 19.62 per cent year-on-year increase in revenue, reaching Rs 1,082.77 crore for Q2 of 2024-2025. However, on a quarterly basis, the company experienced a 7.7 per cent decline in revenue compared to the previous quarter.

 

Net profit for the company rose 1.07 per cent year-on-year to Rs 90.39 crore in Q2 2024-2025. On a quarterly basis, net profit saw a slight decline of 0.11 per cent compared to the previous three months.

Prakash Industries share price history

The company’s stock has underperformed the market year to date as it has fallen 3 per cent, while gaining 12 per cent in the last one year. In comparison BSE Sensex has risen 11 per cent year to date and 21 per cent in a year. 

 

The company has a total market capitalisation of Rs 3,031.86 crore. Prakash Industries shares are trading at a price to earnings multiple of 8.32 times and at an earning per share of Rs 19.56. 

 

At 10:15 AM; the shares of the company were trading 4.09 per cent higher at Rs 169.30 a piece. By comparison, the BSE Sensex was up 1.46 per cent at 80,270.87  level.