Miniratna PSU MOIL shares rises up to 24%, here's target price by Antique Stock Broking

MOIL is a Miniratna state-owned manganese-ore mining company headquartered in Nagpur, India. Antique Stock Broking said the PSU is incurring high capex to enhance its production capacity. Despite the capex, MOIL's FY25 cash is expected to be 16 percent of its market cap with a dividend yield of 1.8 percent. "We like the volume growth prospects, maintain BUY rating with a target price of Rs 451 at a target multiple of 6 times FY27 EV/Ebitda," it said. 

MOIL Ltd shares have increased by 24 percent in the past month. According to Antique Stock Broking, the stock has the potential for further growth due to the company's promising volume growth prospects.

The domestic brokerage has maintained its 'Buy' rating on MOIL stock, noting that manganese ore demand in India is projected to grow from the current level of 8 million tonnes per annum (mtpa) to 11 mtpa by 2030. This growth aligns with the target of 300 million tonnes of installed steel capacity set under the National Steel Policy.

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Antique Stock Broking said MOIL's Q2 realization was impacted by three consecutive price cuts in manganese ore in the range of 8–27 percent. The December quarter realization would be supported by a 3 percent price hike across categories, except a 3 percent price cut on high-grade ores, taken in December. The prices are expected to get stable over the medium term. Spot international high-grade manganese ore prices are higher YoY and are expected to be supported by supply tightness, the brokerage said.

MOIL's FY25 production target stood at 2.1 mt, which is 20 percent higher YoY. The FY26 guidance is at 2.5 mt, which is 1.4 times the FY24 level of 1.8 mt.

At the end of August, MOIL had an environmental clearance (EC) capacity of 2.5 mt, with the management targeting to raise it further to 3.4 mt by the end of FY25 and 5 mt by FY30.

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