This small-cap metal company received grant from State Government; stock price soared more than 10 per cent in a day!

The stock has delivered returns of 137.01 per cent in just 1 year and a multibagger returns of 7,350 per cent over a decade.

Sunflag Iron and Steel Company Limited (SISCL) has received a Letter of Intent (LOI) from the Government of Maharashtra for the grant of a Composite Licence for the "Surjagad — 6 Iron Ore Block" located in Gadchiroli District, Maharashtra. Amid this news, stock soared more than 10 per cent in a day with the spurt in volume more than 10 times.

The LOI, dated December 5, 2023, was issued under the Mineral Auction Rules, 2015, and the Mines and Minerals (Development and Regulation) Act, 1957. It grants SISCL the right to explore and mine iron ore in the 658-hectare block located in Ramunkal village, Etapalli Taluka.

However, the actual grant of the Composite Licence is subject to certain conditions, including satisfactory completion of all requirements under the Act and Rules.

This development is significant for SISCL as it expands its iron ore reserves and potentially boosts its steel production capacity. The company informed the stock exchanges about the LOI in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investors will be following the progress of the LOI closely and its potential impact on SISCL's future performance.

In today's day trading session, Sunflag Iron and Steel Co Ltd exhibited notable volatility. Opening at Rs 202, the stock experienced a bullish surge reaching a high of Rs 229, signalling strong positive momentum. However, it also saw a brief dip to a low of Rs 200 before settling at a closing market price (CMP) of Rs 223. This robust performance resulted in a substantial 11.14 per cent increase from the previous day's closing price of Rs 201.

The firm is a preferred vendor for the automobile industry's main OEMs and other auto auxiliary companies. TVS, Maruti Suzuki, Ford, Bajaj, Toyota, Nissan, Indian Railways, and others are among its key OEM partners.

The stock has delivered returns of 137.01 per cent in just 1 year and a multibagger returns of 7,350 per cent over a decade. Investors should keep an eye on this Small-Cap metal stock.

Disclaimer: The article is for informational purposes only and not investment advice.