Birth of a market darling

In 2017, the focus of PPK Group (ASX:PPK) was on specialised equipment and services for underground coal mines. It had a number of blue-chip customers, including multinational conglomerate Glencore (the largest coal producer in NSW), the BHP Mitsubishi Alliance (Australia’s largest coal producer) and Peabody Energy (the world’s largest private coal producer).

But despite its star-studded client roster, it had been a tough few years for the industry, which had suffered a sharp downturn. PPK, a minnow dancing with elephants, reported hefty losses in the 2015 and 2016 financial years as a result.

The company’s share price fell from 88 cents in January 2014 to 14 cents in 2017. At that price it was trading below its