Buy The Stock To Be Eligible For Energy Stock’s 5:1 Bonus Shares?

In the energy industry, Sandur Manganese & Iron Ores Limited is a mid-size business. As of Wednesday’s closing session, its market valuation was Rs 6,746.05 Cr. One of India’s most integrated and diversified commodities producers, the company has a lengthy history and over 65 years of experience. The firm has announced bonus shares at a 5:1 ratio, subject to shareholder approval.

Bonus Shares for Sandur Manganese and Iron Ores
“Issue of Bonus Shares to the equity shareholders of the Company in the ratio of 5:1 i.e., 5 (Five) new fully paid-up Equity Shares of Rs 10/- (Rupees Ten) each for every 1 (One) existing fully paid-up Equity Share of Rs 10/- (Rupees Ten) each held by the eligible shareholders as on the Record Date (to be determined by the Board and to be intimated to the Exchanges in due course) upon obtaining approval of the shareholders,” stated The Sandur Manganese & Iron Ores Limited in a stock exchange filing.

Buy The Stock To Be Eligible For Energy Stock’s 5:1 Bonus Shares?
The entire number of securities planned to be issued, or the total amount for which the securities would be issued as part of the bonus shares, is 13,50,29,115 equity shares of Rs 10/-each, for a total of Rs 1,35,02,91,150/-. According to a regulatory filing, the business will credit the bonus shares to the qualified shareholders within two months of the date of the board’s approval, which is on or before February 16, 2024.

Financials for Sandur Manganese & Iron Ores
Comparing the September 2023 quarter to the September 2022 quarter, the company’s consolidated net income was Rs 202.62 Cr as opposed to Rs 496.32 Cr. Its net costs for the quarter were Rs 161.76 Cr, up from Rs 459.64 in the previous year. In Q2FY24, the company’s EBIT was Rs 40.86 Cr, up from Rs 36.68 Cr in Q2FY23. In the second quarter of the current fiscal year, Sandur Manganese & Iron Ores reported a net profit of Rs 26.98 Cr, up from Rs 21.88 Cr in the same period of FY23.

Target Price for Sandur Manganese and Iron Ores Shares
“SANDUMA, currently trading at Rs 2640, stock continuously forming new higher high higher low on the daily chart indicate strong uptrend with good volume, with expectations of further upward movement towards the Rs 2905 levels,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.

Significant support is seen on the downside close to Rs 2400. Moreover, the 20-day, 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) are among the important EMAs that SANDUMA is trading above. Strong positive momentum is shown by this, suggesting that price action may continue to rise. At 85, the Relative Strength Index (RSI) indicates an upward trend and validates a rise in purchasing activity.

Furthermore, there is a bullish crossing in the Stochastic Relative Strength Index (Stoch RSI). Together, these technical signs lend credence to the idea that SANDUMA might soon reach its goal prices of Rs. 2905 and Rs. 3400. Setting a stop-loss (SL) at Rs 2400 to safeguard the investment in the event of an unanticipated market reversal is recommended for effective risk management.

A wise tactic would be to look for chances to purchase at prices below Rs. 2500 when the market declines. The analyst concluded, “Taking into account the technical analysis and current market conditions, SANDUMA seems to offer a promising buying opportunity for those aiming for a price objective of Rs 2905 & 3400, provided that prudent risk management measures are put in place.”