Smallcap stock Sarda Energy share price hits 52-week high on record date announcement for Stock Split

Shares of the Sarda Energy & Minerals experienced a significant increase on Tuesday, rising by approximately 10% and reaching a new 52-week high of ₹1,749.85 on the BSE. This surge coincided with a trading volume that increased by 2.73 times. Furthermore, since May 27, when the Board approved the decision to stock split, the company's stock price has appreciated by 54%.

Sarda Energy & Minerals Limited (SEML), a prominent member of the Sarda Group, is a renowned company engaged in the production of steel, ferro alloys, and power. SEML offers a wide array of products, including Wires Rods, HB Wires, Ferro Alloys, Pellets, Sponge Iron, and Billets, showcasing the company's diverse product portfolio.

“This is to inform that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Friday, 4th August 2023 has been fixed as the “Record Date” for the purpose of sub-division/split of existing Equity Shares of the Company from l (One) Equity Share having face value of ₹10 each fully paid-up, into 10 Equity Shares having face value of ₹1 (Rupee One only) each fully paid-up,” SEML said in a regulatory filing.

The company has achieved remarkable performance with impressive returns of almost 98% in the past year and exceptional returns of 947% over the past three years. Furthermore, the company has recorded its highest-ever annual production and sales of Wire Rod, H.B. Wire, and Iron Ore Pellet. Additionally, it has also achieved its highest-ever annual generation of thermal power and hydro power.

On March 15, 2023, the company obtained approval to increase the capacity of the Wire Rod Mill from 180,000 MT to 250,000 MT. Additionally, on December 15, 2022, a new capacity of 36 MVA was successfully commissioned at the Vizag facility. Also, the total capacity for Green Power, which stands at approximately 163.3 MW, exceeds that of Thermal Power. Furthermore, construction has commenced on a 24.9 MW plant along the Rehar river in Chhattisgarh, with an anticipated completion date for commercial operation in FY25. This can push the companies net profit delivering returns to its shareholders.

Investors should closely monitor the performance of this stock that is currently gaining popularity.