Smallcap stock gains over 6% to hit 52-week high after firm receives final compensation order; do you own?

Shares of Indian Metals and Ferro Alloys Ltd gained over 6 per cent to hit its 52-week high-mark of ₹572 apiece on the BSE, as the leading ferro chrome producer received its final compensation order worth over ₹350 crore from the Coal Ministry on Wednesday, December 6. 

On Wednesday, shares of Indian Metals and Ferro Alloys Ltd opened at ₹539.00 and gained 6.12 per cent to hit its 52-week high-mark of ₹572, against a previous close of ₹528.65 on the BSE.

The company said it would receive ₹352.9 crore in compensation from the coal ministry for its subsidiary Utkal Coal Ltd. The compensation towards valuation of Mine Infrastructure is under progress, according to Indian Metals.

‘’Ministry of Coal, Government of India vide its Final Compensation Order dated December 5, 2023 has determined the valuation of compensation of free hold and lease hold land pertaining to Utkal Coal Mines at INR 3,52,89,70,761/- payable to Company's subsidiary viz Utkal Coal Limited (UCL),'' said Indian Metals and Ferro Alloys Ltd in a regulatory filing to the stock exchanges today.

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‘’Jindal Steel and Power Limited (JSPL) the successful allottee has paid INR 1,31,52,57,422/- as fixed cost for land to Nominated Authority and it is directed to M/s JSPL to deposit incremental fixed cost of INR 2,21,37,13,339/- in the designated account of Ministry of Coal, within seven days of receipt of this order,'' the company added in its exchange filing.

Earlier this year, Indian Metals had announced that the coal ministry assessed compensation for land related to Utkal Coal Ltd mines at ₹416.71 crore in September 2023. The successful allottee was asked to deposit this amount within seven days. The valuation for mine infrastructure compensation is still in progress, the company had said in its statement.

Indian Metals & Ferro Alloys Ltd Q2 Results

The ferro producer posted over five-fold jump in consolidated net profit to ₹89.34 crore in the September quarter, aided by reduced expenses. It had clocked ₹16.40 crore net profit during the year-ago period, the company said in regulatory filing.

The company's total income also increased to ₹704.25 crore over ₹676.88 crore in the year-ago quarter. Total expenses trimmed to ₹581.10 crore from ₹647.98 crore last year. The company's board also approved an interim dividend of ₹7.50 per equity share of ₹10 each for the financial year ending March 31, 2024.

Stock Market Today

Domestic equity benchmarks the Sensex and Nifty 50 extended their record-setting spree into the third consecutive session on Wednesday as sentiment remained bullish on expectations of political stability after General Elections 2024 and a strong growth outlook. While the Nifty 50 has jumped 5.8 per cent, the Sensex has gained 5.6 per cent in the last seven days.

Nifty 50 and Sensex closed higher for the seventh consecutive session. On Wednesday, Nifty 50 closed at 20,937.70, up 83 points, or 0.40 per cent while the Sensex closed the day with a gain of 358 points, or 0.52 per cent, at 69,653.73. Both indices closed at their fresh closing peaks. 

During the session, the Nifty 50 hit its fresh record high of 20,961.95 and the Sensex, too, scaled a fresh peak of 69,744.62. Shares of Indian Metals & Feero Alloys settled 0.43 per cent higher at ₹530.90 apiece on the BSE.