Moil is the country’s largest manganese ore producer accounting for near 40 per cent of domestic production. The strong commodity run over the last couple of years has helped MOIL post an average EBITDA margin of 167 per cent during the last three years. It also helped the company load up on the big bucks. Cash now amounts to Rs.120 per share which accounts for 46 per cent of the company’s current stock price.
Like any other commodity company, the fortunes of MOIL are heavily dependent on the global price movement of the metal. Also of concern is the high level of manganese ore imports - from South Africa and Australia.
With manganese ore outlook slated to improve, MOIL should continue its good run. The stock trades at a P/E of 9.9 times - lower than its five year median of 10.1.
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