Is Deccan Gold Mines gaining momentum?

The stock which was largely ignored at one point of time has started gaining investors' attention. Looking at the spike which the scrip gave on July 15, it will certainly validate the first statement made. On July 15, the stock closed at Rs 61.80, gaining approximately 20 per cent and Rs 10 on an intraday basis.

Earlier, on June 29, the shares also witnessed a similar movement when the company was through with the approvals of Ministry of Mines and was waiting for a letter of intent from the Government of Karnataka on Ganajur mines. The company was not able to extract gold due to the licensing reason for the past 10 years but with such a positive development in place, stocks are gaining.

Looking at the global perspective and unstable market, the prospective of the investor in this stock looks highly amicable. The result of the company in the Q4FY16 is not that impressive. The company has reported a net loss of 2 crores in this quarter, which has widened by more than 74 per cent as compared to Q4FY15. The stocks' 52 week High/Low stand at Rs 71.37/23.90.

The shares in the last 5 days have surged by 11 per cent. However, in the last 3 months, the shares have given a return of 68 per cent.

Deccan Gold Mines Ltd., is an Indian company engaged in the business of gold exploration and mining in the states of Karnataka, Andhra Pradesh, Rajasthan and Kerala. The company operates in only one business segment i.e. gold mining and exploration.