MOIL Ltd – CMP 259
Fundamentally, MOIL Ltd is a PSU Mini ratna company and has more than 50% of the total manganese ore reserves In India. Company is cash rich. MOIL has three verticals: Manganese Ore Mining, Ferro Alloy & Electrolytic Manganese Dioxide. MOIL derives 90% of its profits from Manganese Ore Mining. Its major consumers are alloy and streel manufacturers.
Today they have come up with good set of numbers YOY PBT has jumped more than 120% (61.52 vs 27.34 crs). As per the last presentation the company has come up with a growth plan to increase the production gradually from 13.02 in FY 23 lakh tonnes to 35 lakh tonnes by FY 30.
They planning to explore out of leasehold areas and venture into MP, Gujrat, Chhattisgarh, Karnataka, Jharkhand, Andhra Pradesh, Goa, West Bengal and Rajasthan. Recently they have signed an MoU (in form of JV) with GMDC to explore the possibility of manganese ore mining in Gujarat, which has a Resources base of 9.51 million tonnes of manganese ore established.
Technically the chart has formed a rounding bottom in form of a saucer. Its previous high was 286 rs on Oct 17, 2017 and recently the Stock price hit a high of 280 rs on Oct 17, 2023 and is consolidating since a month and the stock price has shown strength today after results. It has to be seen how the stock price behaves once it is able to cross previous high of 286 which it created in 2017. Life time high comes to 295 which was back on 01 Dec 2010 during the IPO(after bonus adjustment.)
Disclosure : Invested as a technofunda bet. (not a recommendation, anyone contemplating investing needs to do their own diligence).
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