MOIL Hits 52-Week High as Net Profit Soars Over 700% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • Jun 7, 2021 - MOIL Hits 52-Week High as Net Profit Soars Over 700%

MOIL Hits 52-Week High as Net Profit Soars Over 700%

Jun 7, 2021

Shares of MOIL jumped as much as 10% in intraday trade today. The stock hit its 52-week high on the BSE after the company reported a manifold jump in net profit for the quarter ended March 2021.

The net profit of the manganese miner soared 761.5% year on year (YoY) to Rs 1.2 bn against Rs 134.7 m for the quarter ended March 2020.

This was on the back of gains in the earnings before interest, tax, depreciation and amortisation (EBITDA) margins from the mining and manufacturing business, resulting in a huge jump in profits.

The company also gained from static input costs and an increase in revenue.

Net revenue of the company during the quarter surged 81% YoY to Rs 4.5 bn vs Rs 2.5 bn in the same period last year.

For the year 2021, the PSU company posted a 14.1% decline in net profit at Rs 2.2 bn. It had posted a net profit of Rs 2.5 bn in the year ended March 2020.

However, net sales rose 13.4% to Rs 11.7 bn for the year as the company reported better volumes and price realisations in its manganese mining business.

The board of directors of the company also recommended a final dividend of Rs 4.9 per equity share for 2021.

--- Advertisement ---
This is a Powerful Mega Trend Playing Out in India

We have uncovered a powerful mega trend that is playing out in India right now.

It could potentially generate immense wealth for early movers.

Our co-head of research Tanushree Banerjee has also zeroed in on one specific stock riding this mega trend.

It's her #1 stock pick right now.

And she believes, this could be one of the top stocks to get to potential Rs 7 crore wealth over the long term.

Tanushree will reveal all the details about this mega trend and her #1 stock at her special online event on July 29.

At the event Tanushree will also show you, how to potentially accumulate Rs 7 crore in wealth over the long term.

What you learn at the event could possibly change your financial fortunes forever.

Click here to reserve your FREE seat.

MOIL to shut JV with SAIL

Earlier this year, in February, MOIL announced the closure of its joint venture company SAIL & MOIL Ferro Alloys (SMFAPL).

SMFAPL was formed in 2008 under a 50:50 joint venture (JV) with the Steel Authority of India (SAIL).

The objective of the JV was to set up a ferroalloys/manganese plant at Nandini, Bhilai, in Chhattisgarh.

With respect to this closure, the company said...

  • Due to reasons including an increase in power cost, the operations are not expected to be viable. Hence, the operations were not started in SMFAPL and as such it has been a dormant company since its incorporation in 2008.

It added that since the objective of the JV could not be attained, it has decided to close SMFAPL.

Accordingly, the board of directors and the shareholders of SMFAPL have decided to strike off the name of SMFAPL from the register of the Registrar of Companies under the provisions of section 248 of the Companies Act, 2013.

Since there is no operation in the JVC, there will be no impact on the performance of MOIL on account of closure of JVC, it added.

Free Signup: The Smallcap Revival Summit

How the stock markets reacted to MOIL's March quarter results

Shares of MOIL opened higher at Rs 191.25 on the BSE and Rs 193 on the NSE and rallied over 10% in early trade today.

The scrip also touched its 52-week high of Rs 201. It had touched its 52-week low of Rs 119 on 14 November 2020.

At its current price, it is trading at a P/E ratio of 24.67

About MOIL

MOIL (earlier known as Manganese Ore India Limited) is a miniratna state-owned manganese ore mining company headquartered in Nagpur, India. With a market share of 50%, it's the largest producer of manganese ore in India.

MOIL operates eleven mines in adjoining districts of Maharashtra and Madhya Pradesh.

--- Advertisement ---
How Fund Managers Spot Winning Stocks

Fund managers don't buy stocks on a whim. They buy only when they can get the best price in the market.

By using Wyckoff Accumulation Analysis, you can get the same edge as fund managers.

Watch this video to learn how to spot winning stocks like fund managers.

Eight of MOIL's eleven mines are underground mines and three are opencast mines. Its Balaghat mine is the largest of the eleven mines and the deepest at 383 metres.

In December 2010, the government divested about 20% of its equity through an initial public offering (IPO).

Of the 20%, the government of India divested 10% while the governments of Maharashtra and Madhya Pradesh each divested 5% of the total equity.

The central government now holds 54% and the two-state governments hold about 11% shares in MOIL. The public holds about 35% of the total shares.

For more details about the company, you can have a look at MOIL's factsheet and MOIL's quarterly results on our website.

You can also compare MOIL with its peers.

MOIL vs Vedanta

MOIL vs Hindustan Zinc


To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Ayesha Shetty

Ayesha Shetty is a financial writer with the StockSelect team at Equitymaster. An engineer by qualification, she uses her analytical skills to decode the latest developments in financial markets. This reflects in her well-researched and insightful articles. When she is not busy separating financial fact from fiction, she can be found reading about new trends in technology and international politics.

Equitymaster requests your view! Post a comment on "MOIL Hits 52-Week High as Net Profit Soars Over 700%". Click here!


More Views on News

NMDC's Rs 36 bn OFS Puts Stock in Focus (Views On News)

Jul 6, 2021

NMDC shares fall 2% as centre fixes floor price for OFS at 6% discount.

Top 5 Stocks Riding the Metals Rally. Do You Own Any? (Views On News)

Jul 3, 2021

Rising commodity prices have pushed the stocks of these companies to all-time highs.

Why Metal Stocks Are Under Pressure (Views On News)

Jun 20, 2021

Global commodity selloff drags BSE Metal Index 7% during the week, most since May 2020.

Coal India Regains Rs 1 tn Market Cap as it Hits 52-Week High. What's Fuelling the Rally? (Views On News)

Jun 12, 2021

In the past two weeks, the stock has outperformed the market by gaining 12%. Can it go higher?

Coal India's Expected Production Numbers Puts Stock in Focus (Views On News)

May 31, 2021

Coal India shares are starting to pick up pace amid rally in commodity stocks.

More Views on News

Most Popular

All You Need to Know About Primary and Secondary Markets

A look at the various types of primary and secondary markets and the key differences between them.

RBI Opens a New Market for Investors (Fast Profits Daily)

Jul 16, 2021

You now have a new way to create wealth. Grab it with both hands.

A Better Way than the Zomato IPO to Play the Food Delivery Megatrend (Profit Hunter)

Jul 14, 2021

A unique backdoor way of making big profits from smallcap companies.

These Are the Best Stocks to Own (Fast Profits Daily)

Jul 22, 2021

Find out what I think are the best kind on stocks to own in the market.

Heads Up Bank Nifty Traders (Fast Profits Daily)

Jul 14, 2021

The RBI raised bond yields on 10yr benchmark paper. That can impact Bank Nifty traders in the coming days.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2021
Get our special report Multibagger Stocks Guide (2021 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Jul 26, 2021 (Close)