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.
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.
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.
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