(1/n)
Sandur Manganese - The Diamond of the Mining Industry
A detailed thread 🧵 on the Largest & Cheapest Pvt Manganese Ore miner in India available at Unbelievably Cheap Valuations
Do Retweet to help us educate more Investors
#investing #mining #Markets
Sandur Manganese - The Diamond of the Mining Industry
A detailed thread 🧵 on the Largest & Cheapest Pvt Manganese Ore miner in India available at Unbelievably Cheap Valuations
Do Retweet to help us educate more Investors
#investing #mining #Markets
(2/n) Strong Fundamentals
Mkt cap - 1745cr
Book Value - 1460
P/E ~2.6x (Annualized Basis)
P/B ~1.3x
ROCE ~21%
ROE ~17%
Promoter Holding - 73.2%
Asset-light, high ROCE
High OPM, high operating-leverage
Yielding good Cash Flow from Operations
Mkt cap - 1745cr
Book Value - 1460
P/E ~2.6x (Annualized Basis)
P/B ~1.3x
ROCE ~21%
ROE ~17%
Promoter Holding - 73.2%
Asset-light, high ROCE
High OPM, high operating-leverage
Yielding good Cash Flow from Operations
(3/n) Reported Back to Back Best Ever Quarterly Performance in History of the Co
500cr Cash in hand (~0.3x current Mkt Cap)
During FY21 Operational turnaround of Ferroalloys was completed with the Coke Oven & WHR Boiler plant fully commissioned
500cr Cash in hand (~0.3x current Mkt Cap)
During FY21 Operational turnaround of Ferroalloys was completed with the Coke Oven & WHR Boiler plant fully commissioned
(4/n)
FIRING ON ALL CYLINDERS
All Segments (Iron Ore, Manganese Ore, Ferroalloys & Coke operating at Full Capacity Utilization)
16% of the Mined Manganese Ore is use captively in Ferroalloys operations
All Iron Ore (56% - 58% Fe grade) is sold out with no captive consumption
FIRING ON ALL CYLINDERS
All Segments (Iron Ore, Manganese Ore, Ferroalloys & Coke operating at Full Capacity Utilization)
16% of the Mined Manganese Ore is use captively in Ferroalloys operations
All Iron Ore (56% - 58% Fe grade) is sold out with no captive consumption
(5/n)
Posted Record Revenues & Profits during Q2FY22
▪️Revenue at 574cr vs 483cr (+19% QoQ) vs 146cr (+293% YoY)
▪️EBITDA at 315cr vs 261cr (+21% QoQ) vs 68cr (+361% YoY)
▪️PAT at 182cr vs 147cr (+24% QoQ) vs 41cr (+344% YoY)
▪️EPS of 202 vs 165 (+24% QoQ) vs 46 (+344% YoY)
Posted Record Revenues & Profits during Q2FY22
▪️Revenue at 574cr vs 483cr (+19% QoQ) vs 146cr (+293% YoY)
▪️EBITDA at 315cr vs 261cr (+21% QoQ) vs 68cr (+361% YoY)
▪️PAT at 182cr vs 147cr (+24% QoQ) vs 41cr (+344% YoY)
▪️EPS of 202 vs 165 (+24% QoQ) vs 46 (+344% YoY)
(6/n)
FY23 Estimates
▪️Revenue of1975cr
▪️PAT at 710cr
▪️EPS of 790
Trading extremely cheap at Just 2.4x forward P/E (Pvt Peers trading at 6x to 7x Forward earnings)
FY23 Estimates
▪️Revenue of1975cr
▪️PAT at 710cr
▪️EPS of 790
Trading extremely cheap at Just 2.4x forward P/E (Pvt Peers trading at 6x to 7x Forward earnings)
(7/n)
Big Expansion Plans Underway
▪️Plans to increase Manganese Ore Capacity by 43% to 0.4 MTPA & Iron Ore capacity by 141% to 3.85 MTPA
▪️Ferroalloys to be expanded further to 72,000 TPA
▪️Setting up 1MTPA Steel Plant
Big Expansion Plans Underway
▪️Plans to increase Manganese Ore Capacity by 43% to 0.4 MTPA & Iron Ore capacity by 141% to 3.85 MTPA
▪️Ferroalloys to be expanded further to 72,000 TPA
▪️Setting up 1MTPA Steel Plant
(8/n)
Current Capacities
0.28 MTPA Manganese Ore
1.60 MTPA Iron Ore
48000 TPA Ferroalloys
0.4 MTPA Coke
30MW Power generation
Huge Mining Reserves
14 MT Manganese Ore
110 MT Iron Ore
Coke can be used to support Steel making in future
Current Capacities
0.28 MTPA Manganese Ore
1.60 MTPA Iron Ore
48000 TPA Ferroalloys
0.4 MTPA Coke
30MW Power generation
Huge Mining Reserves
14 MT Manganese Ore
110 MT Iron Ore
Coke can be used to support Steel making in future
(9/n)
GOI has recently awarded 5 Star Rating to both the mines of the co
Company has been receiving 5 Star Rating award from inception of this award 6 years in a row
GOI has recently awarded 5 Star Rating to both the mines of the co
Company has been receiving 5 Star Rating award from inception of this award 6 years in a row
(10/n)
Ferroalloys which was a big drag on the performance until FY20 has made a Big Turnaround thanks to the Coke Oven & WHR Boiler plant commissioned during FY21 & will lead to better & sustainable profitability
Ferroalloys which was a big drag on the performance until FY20 has made a Big Turnaround thanks to the Coke Oven & WHR Boiler plant commissioned during FY21 & will lead to better & sustainable profitability
(11/n)
Planned 1 MTPA steel plant with backward integrated Coke & Iron Ore will further Boost Profitability
Pick-up in iron ore demand in China from steel mills indicate another Big rally in Iron Ore prices
Fall in cooking coal prices will lead to stronger margins
Planned 1 MTPA steel plant with backward integrated Coke & Iron Ore will further Boost Profitability
Pick-up in iron ore demand in China from steel mills indicate another Big rally in Iron Ore prices
Fall in cooking coal prices will lead to stronger margins
(12/n)
Sandur is one of the most respected private sector Merchant Miner of Manganese and Iron Ores in India
Cheapest Miner by a distance. Even PSU mining stocks not trading so cheap.
Being a Pvt Miner deserves atleast 3x current valuations
Sandur is one of the most respected private sector Merchant Miner of Manganese and Iron Ores in India
Cheapest Miner by a distance. Even PSU mining stocks not trading so cheap.
Being a Pvt Miner deserves atleast 3x current valuations
(13/n)
Given a fair P/E of 7x on Forward Earnings, Fair Price for Sandur Manganese comes to 5500
We believe Sandur Manganese will the the biggest Outperformer in the Mining Sector
TRULY a GEM available at Mouth Watering Valuations
Given a fair P/E of 7x on Forward Earnings, Fair Price for Sandur Manganese comes to 5500
We believe Sandur Manganese will the the biggest Outperformer in the Mining Sector
TRULY a GEM available at Mouth Watering Valuations
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