MOIL on sale!

It is not common to find a stock that you can buy for the cash that the company owns and get the business free. Such offers are abound in recessionary markets, especially in dubious-quality names or those that carry huge debts on their books. It is a rare thing for a profitable, cash-rich company, one that doesn't carry any debt on its books to trade at cash valuations. MOIL is one such company. MOIL has cash of ₹2,830 crore (FY15) on its books. That translates to ₹170 per share or 84 per cent of its current price of ₹202 (closing price on September 28, 2015). How much cash does MOIL require for capex? MOIL needs to make investments to increase its output from existing mines while also scrounging for new ones. That means the company has a regular stream of capex requirements. The targeted capex for FY16 stands at ₹130 crore. The company spent ₹85 crore on capex in FY14 and ₹115 crore in FY15. The total capex for all the company's upcoming projects total ₹900 crore aimed at incre