Target: ₹674
CMP: ₹484.50
MOIL Ltd is India’s largest manganese ore producer with production spread across 11 mines located in Maharashtra and Madhya Pradesh. It is categorised as a Schedule “A” Mini Ratna PSU of the Government Of India.
- Also read:Broker’s call: RR Kabel (Buy)
International Manganese ore supplier South32 based in Australia had announced the suspension of operations at GEMCO after tropical cyclone Megan made landfall in the country’s Northern Territory in March. Last month in its quarterly report the company stated that its’ operations would remain suspended till Jan-Mar 2025. International prices of manganese ore are thus expected to firm up as manganese smelters in Asia have been looking for alternative supplies of manganese ore.
The steady performance of the Indian steel industry bodes well for MOIL in lieu of it supplying critical raw materials. Massive infrastructure outlays by the GOI and a better performance for the auto sector present a positive picture for the steel industry.
Recent price hikes by MOIL and firming up of international prices too shall enable it to improve realizations and margins. Apart from scouting for more manganese ore reserves, it has drawn up plans to foray into lithium mining.
We would recommend Buy with a target price of ₹674 in the next 9-12 months.