MOIL jumps 5% on recording best ever production in a fiscal since inception

Shares of MOIL jumped over five percent on April 3, a day after the PSU announced that it recored the best-ever production of any financial year since inception at 17.56 lakh tonnes, a jump of 35 percent on a yearly basis.

The mineral producer’s FY24 production was 29 percent higher than the previous best ever production of 13.64 lakh tonnes, recorded in FY08.

In addition to this, the company also achieved best ever production of Electrolytic Manganese Dioxide (EMD) at 1,413 tonnes, up 28 percent YoY. EMD is a 100 percent import substitution product, used mostly for pharmaceuticals and manufacturing of batteries.

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MOIL is the largest producer and seller of different grades of Manganese Ore by volume in India. The company produces high, medium and low-grade manganese ore along with manganese dioxide and chemical-grade manganese ore.

All their mines are located in Central India, in the states of Maharashtra and Madhya Pradesh. They are involved in Exploration and Development (E&D) activities as well.

The state-run company informed that it carried out its best ever exploratory core drilling of 87,661 meters in FY24, more than double compared to the previous year.

“The same will not only form the basis of enhanced production from its existing mines but will also be the foundation of opening new manganese mines in the country,” it said.

Following the development, MOIL stock rose over 5 percent to hit an intraday high of Rs 323.15 on NSE. With this surge, the stock has turned positive on a year-to-date basis.

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In the last 12 months, MOIL shares have delivered multibagger returns of 118 percent. In comparison, benchmark Nifty has risen around 30 percent.

According to Bloomberg data, four brokerages have a ‘buy’ rating on MOIL stock, while one has a ‘hold’ call. The stock does have a ‘sell’ rating on it.

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