Sandur Manganese top gainer

Sandur Manganese & Iron Ores is among the top gainers on the BSE today, surging 12.34% to Rs. 184.35, a gain of Rs. 20.25 over its previous close of Rs. 164.10. The stock opened at Rs. 171.75 and touched an intraday high of Rs. 184.75. Trading volumes jumped to 3.51 lakh shares against the two-week average of 0.50 lakh shares, a sevenfold increase, with market capitalisation at Rs. 8,954 crore. The sharp rally follows strong Q2 FY27 results announced yesterday.

Trigger

• Consolidated Q2 FY27 revenue rose 22.2% YoY and 9.6% QoQ to Rs. 1,506.13 crore.
• Consolidated EBITDA increased 38.5% YoY to Rs. 377.83 crore.
• EBITDA margin expanded to 25.1% from 22.1% YoY.
• Consolidated net profit surged 88.1% YoY to Rs. 261.25 crore.
• Standalone PAT jumped 61.1% YoY to Rs. 177.52 crore.
• Standalone finance costs declined nearly 75% YoY to Rs. 7.73 crore.
• Steel segment profit surged 158% YoY to Rs. 103.74 crore, while mining segment profit grew 25.9%.
• Board approved investment of up to Rs. 200 crore in wholly owned subsidiary Royal Sandur MedTech, marking diversification into medical devices.

The biggest positive is that profitability has grown significantly faster than revenue, reflecting stronger operating performance across the steel and mining businesses. The steel division's profit more than doubled despite relatively modest revenue growth of 16.2%, suggesting improved realisations and margins. Mining also delivered healthy growth, with segment revenue increasing 36.4% YoY to Rs. 476.20 crore.

Another important factor is the substantial reduction in finance costs, with standalone interest expenses declining from Rs. 30.42 crore to Rs. 7.73 crore. Lower financing expenses, combined with stronger operating earnings, have supported the sharp improvement in profitability. The consolidated results also include a one-time exceptional gain of Rs. 9.32 crore from reversal of gratuity provisions, although underlying profit growth remains strong even after adjusting for this.

The proposed Rs. 200 crore investment in Royal Sandur MedTech provides a new diversification opportunity however, this is a new business segment, and its contribution to revenues and profitability will depend on future execution.

Valuation appears relatively moderate, with a consolidated PE of 10.64 times and price-to-book of 3.86 times, based on the supplied BSE data.