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.  It’s a very interesting stock because, it does not have a single paisa as turnover and is naturally loss making given its running and fixed costs. Yet, the stock price is ruling at Rs.60 levels and market cap is around Rs.540 crore. Promoters holding is a small 28.55%, which in fact has been coming down consistently.

The company ended Q1FY17 with a net loss of Rs.3 crore, almost doubling up from previous Q1 loss of Rs.1.6 crore. Equity capital is at Rs.9 crore. Probably the only thing going for the company, which explains the price and financial mismatch is that, as on date, it owns a total of 15 Prospecting License applications (PL) and 3 Mining Lease applications (ML) have been submitted by us and our subsidiary, which are pending for approval with relevant Government authorities. And the company has been saying all along that it is sitting on a gold mine, literally and it is stuck because of govt approvals. So the perception is that once the Govt nod comes in, it will take off.