Hold MOIL, target price Rs 330: Sharekhan by BNP Paribas
MOIL's stock outlook is now Hold. Sharekhan by BNP Paribas lowered the target price to Rs 330. Manganese ore prices are falling. The steel sector outlook is weak. MOIL's sales volumes are projected to grow. The company aims for 2.4 million tons ...
By ETMarkets.com |
ETMarkets.com
Sharekhan by BNP Paribas has a hold call on MOIL with a target price of Rs 330. The current market price of MOIL is Rs 307.5. MOIL Ltd., incorporated in the year 1962, is a Mid Cap company with a market cap of Rs 6244.96 crore, operating in the Mining sector.
MOIL's key products/revenue degments include Mining/Minerals, Sale of Products, Wind Power for the year ending 31-Mar-2024.
Financials
For the quarter ended 30-09-2024, the company has reported a Standalone Total Income of Rs 318.68 crore, down -38.71% from last quarter Total Income of Rs 519.91 crore and down -13.40% from last year same quarter Total Income of Rs 368.01 crore. The company has reported net profit after tax of Rs 49.96 Crore in latest quarter.
Investment Rationale
Manganese ore prices have been declining recently, inline with the weak outlook for the steel sector. Prices had shot up at the start of the year due to capacity constraints at a global player. But that capacity is also expected to be back on-stream at the start of CY25. Volumes are expected to grow well with the strong domestic growth outlook of steel. MOIL has an aim of sales of 2.4 mt in FY26. But the uncertain pricing environment doesn?t bode well for the company. Sharekhan by BNP Paribas has downgraded the stock to Hold with a revised target price of Rs 330. At CMP, it trades at 6.6x/5.7x its FY26/27 EV/EBITDA.
Promoters held 64.68 per cent stake in the company as of 30-Sep-2024, while FIIs owned 4.87 per cent, DIIs 7.92 per cent.
MOIL's key products/revenue degments include Mining/Minerals, Sale of Products, Wind Power for the year ending 31-Mar-2024.
Financials
For the quarter ended 30-09-2024, the company has reported a Standalone Total Income of Rs 318.68 crore, down -38.71% from last quarter Total Income of Rs 519.91 crore and down -13.40% from last year same quarter Total Income of Rs 368.01 crore. The company has reported net profit after tax of Rs 49.96 Crore in latest quarter.
Investment Rationale
Manganese ore prices have been declining recently, inline with the weak outlook for the steel sector. Prices had shot up at the start of the year due to capacity constraints at a global player. But that capacity is also expected to be back on-stream at the start of CY25. Volumes are expected to grow well with the strong domestic growth outlook of steel. MOIL has an aim of sales of 2.4 mt in FY26. But the uncertain pricing environment doesn?t bode well for the company. Sharekhan by BNP Paribas has downgraded the stock to Hold with a revised target price of Rs 330. At CMP, it trades at 6.6x/5.7x its FY26/27 EV/EBITDA.
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Promoter/FII Holdings Promoters held 64.68 per cent stake in the company as of 30-Sep-2024, while FIIs owned 4.87 per cent, DIIs 7.92 per cent.
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