ASHAPURA MINES
Forwarded
One rare turnaround story which has come out even stronger. The company which spent the last decade dealing with the issues related to its commodity export ban, several litigations with shipping companies and banks, slowdown in the mining sector, high export duties, along with their internal issues - has finally managed to revive themselves through their foray in G from where they have started exporting couple of commodities. The IO prices which have been hitting the roof on back of revival in steel just proved to be an icing on the cake. It's main Commodity exports will strengthen them further.
1️⃣ _*The company is targeting 4MT of O exports this year as against 1MT last year.*_
2️⃣ The litigations are sorted out, the domestic business which was broken into bits and pieces is back in place and the Management had guided for a double digit growth in the AGM which should be above Rs.800 cr. Altogether, the company is set to post their highest ever turnover, which should easily exceed Rs.2,000 cr as against the current market cap of Rs.1,300 cr.
3️⃣The story doesn’t end here, as they ultimately want to achieve an annual milestone of exporting 10 MT of O from G over the next few years. The main Commodity prices are prevailing around $60 while the IO prices are currently above $200 – one can do rough math at the back of an envelope which will surely blow one’s mind.