Sharekhan has given Buy recommendation for MOIL with a target price of Rs. 220 in its research report issued on Feb 14, 2022
Sharekhan’s research report on MOIL
Q3FY22 PAT of Rs. 124 crore, up 106% q-o-q was significantly above our estimate led by a sharp recovery in margin, inventory gains, higher other income and lower tax rate. EBITDA margin of Rs. 5,295/tonne, up 73% q-o-q was 29% above our estimates reflecting better blended realisations (up 2.8% q-o-q) and strong revenue growth helps absorb fixed overheads. Volume also increased by 15.8% q-o-q to 0.31 mt. International manganese ore prices remain stable at $6.6/dmtu and sustained volume recovery on expectation of higher steel production improves earnings growth visibility. A potential rise in share of high-grade manganese ore to aid margin improvement.
We maintain a Buy on MOIL with a revised PT of Rs. 220 as valuation of 3.3x FY23E EV/EBITDA is attractive, and MOIL has strong cash balance and offers healthy dividend yield of 4-5%.
More Info on MOIL
At 09:45 hrs MOIL was quoting at Rs 171.50, up Rs 1.80, or 1.06 percent.
It has touched an intraday high of Rs 174.25 and an intraday low of Rs 169.50.
It was trading with volumes of 19,765 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed down 3.83 percent or Rs 6.75 at Rs 169.70.
The share touched its 52-week high Rs 208.00 and 52-week low Rs 135.25 on 22 June, 2021 and 25 March, 2021, respectively.
Currently, it is trading 17.55 percent below its 52-week high and 26.8 percent above its 52-week low.
Market capitalisation stands at Rs 4,070.17 crore.