JK Cement emerges successful bidder for Mahan coal mine in Madhya Pradesh

JK Cement Ltd. has emerged as the successful bidder for the Mahan coal mine in Madhya Pradesh’s Singrauli district, according to a regulatory filing on Thursday. The mine has a geological coal reserve of approximately 107.4 million tonnes and a peak-rated capacity of 1.2 million tonnes per annum.

This marks the company’s second commercial coal block win, following its acquisition of the West of Shahdol (South) coal block. “The company is committed to becoming self-reliant for its existing cement plants and upcoming projects,” JKC stated. The surplus coal from the mine will be sold commercially.

The vesting order was handed over to JK Cement during a ceremony at Shastri Bhawan, New Delhi, a critical milestone for commencing mining operations within the stipulated timeline.

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Meanwhile, JK Cement’s consolidated net profit fell 23% year-on-year to ₹136.2 crore in Q2 FY24, with revenue declining 7% to ₹2,560.1 crore. On Thursday, shares of JK Cement closed 0.83% lower at ₹4,580.70 apiece on the NSE, underperforming the 1.02% fall in the benchmark Nifty.

Despite this, the stock has gained 20.83% year-to-date. Bloomberg data shows 19 out of 26 analysts recommend a ‘buy,’ with an average price target suggesting a modest 3.2% upside.