Broker’s call: MOIL (Buy)

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Target: ₹555

CMP: ₹437.20

In Q4-FY24, revenue stood at ₹415.90 crore, down 3 per cent y-o-y but up 36 per cent q-o-q. PAT reached ₹91.10 crore, marking a 68 per cent increase q-o-q and a 13 per cent increase y-o-y. MOIL has issued a final dividend of ₹2.55 a share.

The price of manganese ore is increasing due to an expected acute shortage in the coming months. This crisis stems from a massive cyclone that recently struck the Australian coast. The world’s largest manganese ore mines, situated in Australia, along with the connected seaport, have been completely destroyed by the cyclone.

With the price of manganese ore rising due to an expected acute shortage caused by a massive cyclone that severely damaged the world’s largest manganese ore mines and seaport in Australia, MOIL’s record production of 1.756 million tonnes in FY24 and a target of 2.490 million tonnes by FY26, representing a 42 per cent increase, positions it well for capitalising on supply disruptions.

Additionally, recent price hikes of up to 40 per cent for high-grade manganese ore and planned investments of approximately ₹649 crore over the next two years enhance its growth potential, making it an attractive investment prospect.