Mehabe score: 5 G Factor: 3 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 4.
Description
MOIL is engaged in one of the largest manganese ore producers of the country.(Source : 202003-01 Annual Report Page No:98)Site:MOIL
Market Cap:
Rs 4,350 cr
Price:
183.0
Trading pe:
20.4x
Book-value:
119/share
Div yield:
3.27 %
Earning yield:
5.71%
Face-value:
10.0/share
52week high:
196.00
52week low:
119.00
Technical Analysis
Stock trades at 183.0, above its 50dma 165.95. It also trades above its 200dma 150.92. The stock remains bullish on techicals
The 52 week high is at 196.00 and the 52week low is at 119.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is providing a good dividend yield of 3.27%.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 63.14%
Weakness
– has a low return on equity of 10.71% for last 3 years.
-Debtor days have increased from 50.33 to 70.23 days.
Competition
– The industry trades at a mean P/E of 25.5x. KIOCL trades at the industry’s max P/E of 59.41x. MOIL trades at a P/E of 20.4x
– Industry’s mean G-Factor is 5.0 while the mean Piotski score is 8.0. MOIL has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 15.9%. The max 1- month return was given by KIOCL: a return of 75.66 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1177.0 cr for period ended Mar 2021 vis-vis sales of Rs 1034.0 cr for the period ended Mar 2020, a healthy growth of 12.1%. The 3 year sales cagr stood at -3.6%.
Operating margins shrank to 24.0% for period ended Mar 2021 vis-vis 25.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 177.0 cr for period ended Mar 2021 vis-vis sales of Rs 248.0 cr for the period ended Mar 2020, falling 40.1%.
Company reported a poor Net Profit CAGR of -25.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 291.0 cr for period ended Mar 2021 vis-vis Rs 58.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 26% on a 1 Year basis vis-vis a return of -0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 14% vis-vis a compounded sales growth of -4% over the last 3 Years. – The compounded profit growth on a TTM basis is -12% vis-vis a compounded profit growth of -20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has risen for the period ended Mar 2021. The Mar 2021 fii holding stood at 4.72% vis-vis 1.9% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 17.11% vis-vis 17.1% for Dec 2020
Conclusion
– is almost debt free.
-Stock is providing a good dividend yield of 3.27%.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 63.14% – has a low return on equity of 10.71% for last 3 years.
-Debtor days have increased from 50.33 to 70.23 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 165.95 and is trading at 183.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
