Delhi-NCR-based business conglomerate Sindhu Trade plans to go debt free by 2023, scrip up over 1000% in 3 years

A business conglomerate positioned in Delhi-NCR Sindhu Tradelink Limited works in a number of industries, including transportation, logistics, construction, oil and lubricants, finance operations, coal mining, trading and consulting, media operations, and power generation and sales. For the past 20 years, the corporation has operated both on Indian and international terrain.

The Board of Sindhu Trade Links recently declared that the company's debt has been trimmed by Rs. 74.34 crores, from Rs. 173.50 crore to Rs. 99.16 crore, and that the amount of secured bank and NBFC debt now due had fallen below Rs. 100 crores. Additionally, the company stated that, in light of the significant expansion of its business operations both domestically and abroad, it will be debt free by 2023. 

“With promoters' persistence, the company dared to initiate this debt reduction program during the last year, wherein businesses across the world were considerably disturbed by outburst of Covid-19 pandemic and is continuing thereafter with tenacity to reduce bank debt every quarter, and accordingly Rs. 74.34 Cr of secured Bank/NBFC’s-debt has been repaid by the Company in the last financial year,” said the Board of Directors of Sindhu Trade Links in a stock exchange filing.

Commenting on the development, Mr. Vikas Singh Hooda, CFO of the Company said “As required in current economic situation, we are focusing on reduction of Debts and has substantially reduced secured Bank/NBFc's-debt in last Financial year. This not only shows resolve of the company's management but also signifies company's financial strength. The bank-debt reduction win result in better financial management and reduction of costs etc.”

The company boasts a prestigious clientele which includes ACB (India) Limited, Mangal Sponge & Steel Pvt Limited, Maruti Clean Coal & Power Ltd, MB Power Limited, Nova Iron & Steel Limited, SAI KRUPA Logistics, Sainik Mining And Allied Services Ltd and South Eastern Coalfield Ltd. which have been giving them huge business from the past decade. The company also plans to indulge in multiple JVs for lithium mining this year which will boost its revenue further by 25%. 

The majority of the company’s revenue comes from Transportation, Logistics, Mining and Power generation operations, which are constantly being scaled by the company considering the rapid growth in demand. Sindhu Trade Links has been categorised in A-Group of companies by the Bombay stock exchange which has a significant market cap.

The company has been improving its book value in the past 2 years and FIIs can be seen increasing their shareholding in the company. This A-Group stock has gained over 20% in a month with strong momentum on the buying side with price above all the moving averages.

The company’s Transport & Logistic business is mainly built around industrial and mining clients with the largest turnover and profit contributor since the past decade. STTL also has multiple government companies as a client since they have their own fleet of 308 Tippers, 175 Loaders, 7 Massive surface Miners etc.

Param Mitra, one of STTLs subsidiaries, owns a huge stake in Griffin Coal mines of Australia which has the largest coal asset over 10 Billion Metric Tons. With the ownership of this mine STTL is bound to continue the mining and power generation business for the next 2 decades easily.

 The power distribution and generation subsidiary Shyam Indus Power has been present in more than 10 states of India, where they serve the Indian Railway department, Civil EPC Contracts and other corporates if needed.  STLL also owns and operates 12 MW bioMass Power Plants in chhattisgarh where the power is sold to the state government at the rates decided by central electricity regulatory commission.

STLL had recently entered the real estate market and now owns a massive land bank across the country which is well over thousands of acres. The company has decided to develop the land bank over a period of 7 to 10 years for commercial and residential use.

The stock of Sindhu Trade Links  Ltd., has been recommended by analyst Nikhil Bhatt for a Midterm buy based on its upcoming growth and debt reduction plans. Bhatt recommends buying the stock at its current market price and holding it for the short term, with a target price of Rs. 40 and a stop-loss of Rs. 17. The stock has shown a positive breakout near the first resistance and its relative strength index (RSI) indicates price strength, making it a suitable option for buying. The company also plans to go debt free by 2023 which makes an attractive opportunity for its investors for mid to long term. The Business conglomerate has deep roots in both domestic and international markets which will make it highly profitable after the debt is removed since it operates in a highly profitable and demanded sector.

The shares of Sindhu Trade Links were last seen trading on the BSE at ₹22.58 apiece level. The stock has risen 1,187.92% in 5 years and in the last 3 years, it has surged 1,113.99%. In the last 1 year the stock has fallen 44.41% and on a YTD basis it has gained 20.11% so far in 2023.