Prakash Industries has been on a streak of gains in share price over the past week, first with news of Rakesh Jhunjhunwala raising his stake in the company, and now with the announcement that Prakash will improve its profitability by over Rs. 20 crore, thanks to securing 100% long term coal linkages for sponge iron.

The five year linkages will free Prakash Industries from having to meet the requirement of its plants via coal spot auctions. It will also save the firm over 20% of its coal costs. The supply is expected to commence from November 2017.