Buy MOIL; target of Rs 400: Anand Rathi

Anand Rathi's research report on MOIL

A schedule ‘A’ Miniratna Category-I company, MOIL is the largest manganese ore producer in India, with market shares at ~20% domestically and ~2.2% globally. The company has 10 mines across Maharashtra and Madhya Pradesh, and boasts of ~21% of India’s manganese R&R. It is enhancing its mine environmental clearance (EC) from 2.49m tonnes to 5m tonnes by FY30; this is expected to drive its domestic market share from current ~20% to ~32% by FY30. With manganese being an essential raw material in steel manufacturing,the company is well positioned to capitalise on India’s steel growth story owing to its dominant market share, higherquality ore and strategic mine locations in central India (equidistant from numerous steel plants).

Outlook

We expect the company to register a >19% revenue CAGR and >32% EBITDA CAGR over FY24-27. We, therefore, initiate coverage on the stock with a Buy rating and a TP of Rs400.

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