Sitting on a Cash Pile

Moil is the largest producer of manganese ore in India and came up with an IPO in the year 2010. Since then the share price has fallen steadily to ₹286 since its listing at ₹467. The fall can be attrubuted to weak business resulting in stagnant revenues and profitability in the last few years with a marginal fall in production of manganese to 11.35 lakh tonnes in FY-14 from 11.39 lakh tonnes in the previous year. But the company is sitting on a cash reserve of ₹2,872 crore which is 55 per cent of the market capitalisation. Given its zero debt status, this translates into an enterprise value of ₹2,079 crore. The operating cash earning yield per share given the price is 15 per cent and net earnings yield is that of 11 per cent. Despite the slowdown in t