Hold MOIL; target of Rs 330: Sharekhan

Sharekhan's research report on MOIL

Q2FY25 Revenue/EBITDA of Rs. 292 crore/Rs. 79 crore fell 16%/18% y-o-y and was lagging our estimates as the decline in sales volume (down 18% y-o-y and 34% q-o-q) affected the performance. Realization of Rs. 9,121/tonne was flat y-o-y and down 34% q-o-q. Blended margin of Rs. 2,657/tonne was flat y-o-y and down 44% q-o-q. MOIL has taken 3-4 price cuts recently because of the weak pricing outlook of the sector currently.

Outlook

We downgrade the stock to Hold with a revised PT of Rs. 330 given the uncertainty regarding the pricing environment. The stock trades at 6.6x/5.7x its FY26/27 EV/EBITDA (expensive vs historical multiples).