Sandur Manganese

Thank for sharing the details on how mines are auction. About GPIL, as per IP:

Iron Ore capacity expansion:–

1. EC approval is expected in Q2/Q3 FY24.
2. Once approval is received it will take 18 months to expand the capacities, that is by Q1/Q2 of FY26.

Pallets Expansion:

1. Groundwork expected to start in Q3/Q4 FY24.
2. It will take 24 months to complete the capex. Thus commercialization is expected in Q4 FY26.

So major capacity is getting expanded in FY26, considering that everything goes as per the plan. But till then whatever CAPEXes that the company has done recently or is doing currently are towards cost reduction.

For such companies, I usually like to keep them on radar and see how plans are getting executed. If they are moving as per the plan and once there is more certainty, I usually take bet. I follow this approach because I have burnt my fingers by betting on the companies where they had a huge expansion plans but failed in execution or faced the challenges in selling their products after expanding their capacities.