Sharekhan has given Buy recommendation for MOIL with a target price of Rs. 220 in its research report issued on Mar 25, 2022
Sharekhan’s research report on MOIL
Improved pricing environment with 10-15% price hike by MOIL Limited (MOIL) in March 2022 to drive margin expansion going ahead. Sharp 36% rally in international manganese ore price in CY2022 YTD to support realisation and profitability. MOIL is well placed to grow its sales volume and management’s production target of 3mt by CY2030E implies robust 11% CAGR over FY2021-FY2024E. The optimism stems from India’s target to grow steel production by 2.5x to 300mt over CY2021-CY2030E. We conservatively model a 4% volume CAGR over FY2021-FY2024E. Strong cash position and healthy dividend yield of 4-5% provide comfort to investors.
We maintain Buy on MOIL with an unchanged PT of Rs. 220, noting inexpensive valuation of 2.3x its FY2023E EV/EBITDA and strong earnings growth outlook.
At 14:20 hrs MOIL was quoting at Rs 185.35, up Rs 6.70, or 3.75 percent.
It has touched an intraday high of Rs 188.50 and an intraday low of Rs 175.15.
It was trading with volumes of 98,033 shares, compared to its thirty day average of 52,335 shares, an increase of 87.32 percent.
In the previous trading session, the share closed up 0.14 percent or Rs 0.25 at Rs 178.65.
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 10.89 percent below its 52-week high and 37.04 percent above its 52-week low.
Market capitalisation stands at Rs 3,771.60 crore.