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Last Updated : Apr 09, 2019 01:19 PM IST | Source: Moneycontrol.com

Buy MOIL; target of Rs 200: Kotak Securities

Kotak Securities is bullish on MOIL has recommended buy rating on the stock with a target price of Rs 200 in its research report dated April 08, 2019.

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Kotak Securities' research report on MOIL


As per the press release, MOIL has achieved highest ever turnover in FY19 of Rs14.4 bn (unaudited and provisional), up 9% YoY, which is higher than our estimates of Rs12.5 bn. The outperformance was driven by record sales of non-fines (high grade ore) to ~1.1 MT, up 13% YoY. Average realisation during the quarter was also higher during the year (in 9MFY19, non-fines realisation was up 7.8% YoY). During the year, the company has opened a new mine Parsoda, in Nagpur district, with an annual production of 40,000 tonnes, which will support the volume growth (marginally) in FY20E.


Outlook


At CMP, the stock trades at 10.4x/8.5x/8.5x FY19E/FY20E/FY21E earnings and on EV/EBITDA, it trades at 4.0x/2.7x/2.3x FY19E/FY20E/FY21E EBITDA, and trading at a discount to its historical average. We reiterate our BUY rating, with an unchanged target price of Rs200.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




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First Published on Apr 9, 2019 01:19 pm
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