Sell MOIL with a target price of Rs 215

NEW DELHI: Citi has given a ‘Sell’ rating on MOIL with a target price of Rs 215 and has also discontinued its coverage on the stock.It has lowered PAT by 7-11% for FY13E/14E incorporating the 9MFY13 results and current trends.

It has valued MOIL using a blend of DCF (40%) and 8.5x PE (60%). Citi said its manganese outlook is muted as its cautious on steel near term. “We continue to forecast a muted steel outlook and believe oversupply in China/Europe leaves little room for more price upside in 2013,” Citi said in a report.