Retail Research
11th June, 2025
Equity Fundamental
Pick of the Day (Short Term Delivery Call)
Company Name: Sandur Manganese & Iron Ores Ltd.
NSE Code SANDUMA CMP (Rs) 477.0
BSE Code 504918 Accumulation Range (Rs) 472.0-482.0
Market Cap (Rs cr) 7,596.0
Target (Rs) 550.0
Avg. Trading Vol. in lakh (5 days/30 days) 4.6/7.4
Upside Potential (%) 15.3%
Avg. Delivery Vol. in lakh (5 days/30 days) 2.1/3.1
Promoter Holding (%) 74.2 Duration 6-12 Months
Pledge (%) -
Source: ACE Equity, SSL Research
Sandur Manganese & Iron Ore Ltd (SMIORE) is one of India’s highly integrated and diversified private sector
merchant miners and commodity producers with over seven decades of operational experience. The company’s
operations span across Mining (Manganese & Iron Ore), Ferroalloys and Coke & Energy segments.
Investment rationale:
Operational prowess: SMIORE is the second largest Manganese (Mg) ore miner in the country and holds mining
reserves of 17 mnt/117 mnt for Mg ore/iron ore respectively with leases up to CY33. As of Mar’25, the company’s
annual capacity stood at a) 0.6 mnt for Mg ore; b) 4.5 mnt for Iron ore; c) 95,000 MT for Silicomanganese; d) 1,25,000
MT for Ferromanganese and e) 0.5 mnt for Coke.
Acquisition of Arjas Steel: During FY25, SMIORE completed the strategic acquisition of Arjas Steel, a manufacturer
of auto grade Special Bar Quality (SBQ) Steel. Arjas is amongst the top 5 players in the niche SBQ steel industry which
commands better realizations and margins compared to commodity steel products. The subsidiary boasts an
impressive portfolio of marquee OEM clientele across the PV, CV, Off-road, 2W categories comprising the likes of
M&M, Maruti Suzuki, Tata Motors, Royal Enfield, TVS Motors, etc. With a manufacturing capacity of ~0.5 mnt, Arjas
manufactures over 100 grades of SBQ Steel with varied applications. This acquisition will enable Arjas Steel to source
its raw materials (such as Iron Ore) directly from SMIORE, enhancing its cost-competitiveness.
Strong developments in the Mining segment: During FY25, the company received approval with regards to
increasing its iron ore production from 3.8 mnt to 4.4 mnt and also received an approval for handling incidental iron
ore to the tune of 0.3 mnt by Aug’26 which enables it to sell the already excavated 0.3 mnt ore in addition to its
annual production. Following these approvals, the company’s MPAP (Maximum Permissible Annual Production)
limits now stands at 0.6 mnt for Mg ore and 4.5 mnt for Iron ore vs 0.5 mnt/3.8 mnt in FY24 respectively.
4QFY25 Performance: During 4QFY25, the company’s consolidated Revenue/EBITDA stood at Rs 1,321 cr/Rs 316 cr
growing 139.5%/52.1% YoY respectively while PAT stood at Rs 157 cr, down 4.3% YoY. EBITDA margins for the quarter
came in at 23.9%. Sales volumes for Iron ore and Coke were up 83%/88% YoY whereas Mg ore and Ferroalloys saw a
drop of 39%/86% YoY respectively. Realizations for Mg ore witnessed some moderation, while iron ore realizations
remained largely unchanged during the period. At CMP of Rs 477, the stock trades at TTM EV/EBITDA multiple of
11.1x.
Key Risks: Slowdown in sales ramp-up; Adverse developments in domestic environmental policies.
Short Term Call
Stock Performance (2-Yr; Indexed to 100) Shareholding Pattern (%) (Mar’25)
140
23.2
115
1.4
90
1.1
65
40 74.2
Jun-24
Nov-24
Dec-24
Jun-25
Jul-24
Oct-24
Aug-24
Sep-24
Feb-25
Apr-25
Mar-25
May-25
Jan-25
Sandur Manganese & Iron Ores Ltd. Nifty SmallCap Promoter FIIs DIIs Public
Source: ACE Equity, SSL Research Source: BSE, SSL Research
Why Now?
Sr. No. Parameters Score
1 Recent financial performance (management guidance, return and margin
profile, growth and cash flow)
2 Overall corporate governance (Promoter pledge, credit rating, audit qualified
opinion etc)
3 Recent stock price movement-worst is over for stock, all negatives in the price
(valuation, 52W H/L, below average PE etc)
4 Beneficiary of recent macro and industrial developments (Regulatory,
Fiscal/Monetary policy, favorable industrial outlooks etc)
- Neutral - Positive - Negative
Duration of recommendation: Short to Medium term
* Please refer to our call guide mentioned below.
Recommendation History
Date Stock Price Target Price Recommendation Status
NA NA NA NA NA
Call Guide:
The above recommendation is meant for short term investment purpose with holding period between 180-365 days and target upside upto 10% (+/- 0.5%). The
recommended price is previous day’s closing NSE price (except the stock only listed on BSE). In case of gap-up opening the call is termed "Not Entered" only if stock
price does not come within +1% of previous close price on the day of call; partial profit is generally not advised; Call can be rationalized (changed) by Fundamental
team at their discretion; generally to average or exit at loss (cut-loss strategy).
2
Short Term Call
SBICAP Securities Limited
(CIN): U65999MH2005PLC155485 I Research Analyst Registration No INH000000602
SEBI Registration No.: Stock Broker: INZ000200032 | CDSL: IN-DP-314-2017 | NSDL: IN-DP-NSDL-369-2014 | Research Analyst:
INH000000602
IRDA/RW/IR2/2015/081 | IRDA/RW/IR1/2016/041 | IRDA: CA0103
Registered & Corporate Office: Marathon Futurex, A Wing, 12th Floor, N. M. Joshi Marg, Lower Parel, Mumbai-400013.
For any information contact us:
022-6854 5555
E-mail:
[email protected] I Web: www.sbisecurities.in
DISCLOSURES & DISCLAIMERS:
Analyst Certification: The views expressed in this research report ("Report") accurately reflect the personal views of the research analysts ("Analysts")
employed by SBICAP Securities Limited (SSL) about any and all of the subject issuer(s) or company(ies) or securities. This re port has been prepared
based upon information available to the public and sources, believed to be reliable. I/We also certify that no part of my/our compensation was, is, or will
be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
The Analysts engaged in preparation of this Report or his/her relative:-
(a) do not have any financial interests in the subject company mentioned in this Report; (b) do not own 1% or more of the equity securities of the
subject company mentioned in the report as of the last day of the month preceding the publication of the research report; (c) do not have any
material conflict of interest at the time of publication of the Report.
The Analysts engaged in preparation of this Report:-
(a) have not received any compensation from the subject company in the past twelve months; (b) have not managed or co-managed public offering of
securities for the subject company in the past twelve months; (c)have not received any compensation for investment banking or merchant banking or
brokerage services from the subject company in the past twelve months; (d) have not received any compensation for products or services other than
investment banking or merchant banking or brokerage services from the subject company in the past twelve months; (e) has not received any compensation
or other benefits from the subject company or third party in connection with the Report; (f) has not served as an officer, director or employee of the
subject company; (g) is not engaged in market making activity for the subject company.
Name Qualification Designation
Sudeep Shah MMS-Finance DVP- Technical & Derivative Research
Sunny Agrawal B.E, MBA (Finance) DVP - Fundamental Research
Rajesh Gupta PGDBM (Finance), MA (Bus. Eco) AVP - Fundamental Research
Monica Chauhan C.A. Research Analyst - Equity Fundamentals
Harsh Vasa CA Research Analyst - Equity Fundamentals
Sumeet Shah B.E., CFA Research Analyst - Equity Fundamentals
Sweta Padhi MBA (Finance) Research Analyst - Equity Fundamentals
Uday Chandgothia B.Tech (Mech), MBA (Finance) Research Associate - Equity Fundamentals
Arnav Sane BMS (Finance) Research Associate - Equity Fundamentals
Shubham Purohit BMS (Finance) Research Associate - Equity Fundamentals
Gautam Updhyaya MBA (Finance) Research Analyst - Equity Derivatives
Vinayak Gangule BE (IT) Research Analyst - Equity Technicals
Ashwin Ramani B.Com Research Analyst- Equity Technicals
Sagar Peswani B.Tech (ECE) Research Associate - Equity Technicals
Kalpesh Mangade B.Com MIS Analyst - Retail Research
For other Disclosures please visit: https://bit.ly/R_disclaimer02
Sudeep Shah Sunny Agrawal
DVP – Technical & Derivative Research DVP – Fundamental Research
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