Shares of MOIL Ltd. continued to advance on Thursday after the company posted its best ever August production of 1.24 lakh tonnes. The company achieved production of 7.24 lakh tonne during the first five months of the current financial year, registering a growth of 7% over the same period last year. The stock rose over 3% a day prior.
MOIL, a 'Miniratna' company based in Nagpur, is the top producer of manganese ore in the country, holding 50% market share. It operates 11 mines in the neighbouring districts of Maharashtra and Madhya Pradesh.
The company achieved sales of 5.92 lakh tonnes during April-August 2024, which is almost at the same level of last year. This is despite challenging market conditions and high international price volatility over the past few months, the Ministry of Steel said on Tuesday.
MOIL increased its exploratory core drilling to 46,585 metres, 1.6 times more than the previous year, highlighting its focus on exploration.
Last week, the company reduced prices for several manganese ore and related products. Manganese is a transition metal and has diverse industrial applications, especially in stainless steels where it enhances strength, workability, and wear resistance.
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Shares of MOIL advanced 3.4% before paring gains to trade 1.2% higher at Rs 394.75 per share as of 10:35 a.m., compared to a 0.17% decline in the NSE Nifty 50.
The stock has risen 63% in the last 12 months and 25% year-to-date. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 34.
Of the three analysts tracking the company, two have a 'buy' rating and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 29%.
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