I have been getting several queries about Sandur given that Q4 nos look really good. Few thoughts:
- Don’t annualize Q4 nos. these won’t repeat until the next phase of growth happens. The mining segment did very well in this quarter as the co sold around 60% of their annual limit in this quarter. This year was very volatile as there was mining ban etc and prices were very volatile. Co managed this very well.
- Finally the much awaited expansion approvals have come for the mining segment. There should be big scale up from Q3FY24.
- Good thing is that the most lucrative segment – Mining will see material investments as the co will put up beneficiation and pellet plant and this segment can scale 2.5 to 3x in next 2-3 years.
- negatives – there is lot of pressure on the other business segments given the softness/downturn in commodity/steel sector. Coke prices have fallen a lot and probably there maybe some pain due to this in near term.
Disc: Biased. Invested in family and client acs. Can change view.
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