Government Tenders Worth Rs 100 Crore Awarded to Multibagger Coal Exploration Stock

In a significant development for the coal industry, South West Pinnacle Exploration has emerged as the L-1 bidder for government tenders worth over Rs 100 crore. This achievement reflects the growing dynamism within the coal sector, fueled by increased production of fossil fuels during the month of September.

Image Source -www.economictimes.indiatimes.com

In a significant development for the coal industry, South West Pinnacle Exploration has emerged as the L-1 bidder for government tenders worth over Rs 100 crore. This achievement reflects the growing dynamism within the coal sector, fueled by increased production of fossil fuels during the month of September.

Government data highlights a substantial upswing in coal production, reaching 67.27 million tons (MT) compared to 58.04 MT in the same period last year. The Ministry of Commerce & Industries' index of the coal sector recorded an impressive year-on-year growth of 16.1%, surging to 148.1 points—the highest in the last 14 months, except for August 2023.

With the government's dedication to fortifying energy security through augmented coal production and distribution, several players in the coal industry are enjoying boosted revenue figures. Among them, South West Pinnacle Exploration, primarily operating in the coal sector, reported net sales of Rs 23.27 crore in the July-September quarter.

This Gurugram-based corporation, specializing in end-to-end drilling and resource exploration services, secured victory as the L-1 bidder for two government tenders valued at a total of over Rs 100 crore. The company's management remains optimistic about achieving a revenue growth rate of 15 to 20% in the fiscal year 2023-24.

Also Read: Score Big Savings On Smart TVs During TCL's Grand Diwali Sale: All The Details

Furthermore, the corporation is advancing in the execution of a long-term contract through a joint venture in Oman, expanding its reach into the Middle East region. South West Pinnacle Exploration has also acquired a coal block in Jharkhand, boasting geological reserves exceeding 84 million tons. They've inked a Coal Mine Development and Production Agreement with the Ministry of Coal for this endeavor.

Since its establishment in 2007, South West Pinnacle Exploration has successfully completed over 125 projects, cementing its reputation as an industry leader. The company's strong performance is reflected in its stock price, as its shares on the NSE closed in the green at Rs 184 on Tuesday. In the first ten months of 2023, it delivered an impressive return of 52%, turning into a multi-bagger over the last five years with an astonishing 643% return.

South West Pinnacle Exploration's ascent as an L-1 bidder for government tenders signifies not only its remarkable growth but also the promising trajectory of the coal sector in India as it seeks to bolster its energy security.