Feb 08, 2013, 07.30 PM IST
Angel Broking has maintained neutral rating on MOIL, in its February 6, 2013 research report.
Angel Broking has maintained neutral rating on MOIL , in its February 6, 2013 research report.
“For 3QFY2013, MOIL’s net sales were lower than expected due to lower-thanexpected volumes and realizations, whereas the PAT was in-line with our estimate. We recommend a Neutral rating on the stock.”
“During 3QFY2013, MOIL’s net sales decreased by 4.7% yoy to `228cr (below our estimate of `268cr) due to lower sales volumes (-1.0% yoy) and lower realizations (-3.3% yoy). Despite a decline in top-line, the EBITDA rose by 4.8% yoy to `115cr due to lower raw material expenses. Other income increased by 28.6% to `64cr, resulting in net profit growth of 11.8% yoy. The company has cut manganese ore prices by 5% for 4QFY2013, which could be on account of rising imports of manganese ore in India, in our view. The company expects sales volumes to remain flat during FY2013-14, although it expects volume growth to pick up from FY2015.”
“After a steep decline in manganese ore prices during CY2011, manganese ore prices have stabilized in the global markets. However, we do not foresee any meaningful upside in manganese ore prices over the coming one year. Further, we estimate MOIL’s sales volumes to remain flat during FY2013-14. In the absence of any significant volume growth, we believe the stock lacks key catalysts. The stock is trading at FY2014E EV/EBITDA of 4.3x, which is fair in our view. Hence, we recommend a Neutral rating on the stock,” says Angel Broking research report.
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