230% Returns in 1 Year: Multibagger PSU stock hits 19% upper circuit on Q4 show; ₹2.5/share dividend declared

The recent surge in shares came as India’s leading manganese ore producer reported a rise of 12.6 per cent in net profit at ₹91 crore during the March quarter of FY24, compared to ₹81 crore in the year-ago period. The revenue from operations dropped 2.8 per cent to ₹416 crore, compared to ₹428 crore in the year-ago period.

Also Read: Multibagger Stock: MOIL share price zooms over 50% in April so far, gains 178% in a year

MOIL Q4 Results

On the operating level, MOIL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in the March quarter dropped 3.2 per cent to ₹128 crore, compared to ₹132.6 crore in the same period last year. Margin came in at 30.8 per cent in Q4FY24 compared to 31 per cent in the year-ago period.

The strong performance can be attributed to the rising prices of manganese ore, coupled with its strong sales and production figures. Last month, the company implemented a price revision for various grades of manganese ore and other products, resulting in increases ranging from three per cent to six per cent.

MOIL has achieved its highest-ever production volume since its inception, totaling 17.56 lakh tonnes in FY24, marking a significant 35 per cent year-on-year (YoY) growth. This surpasses the previous record of 13.64 lakh tonnes set in FY 2007–08 by 29 per cent.

Similarly, on the sales front, the company achieved its best-ever sales figures, reaching 15.36 lakh tonnes in FY24, indicating impressive 30 per cent YoY growth. This exceeds the previous record of 13.92 lakh tonnes set in FY 2007-08 by 10 per cent. MOIL registered record turnover at Rs. 1449.42 crore with a growth of eight per cent YoY.

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MOIL also has achieved its highest-ever production of electrolytic manganese dioxide (EMD), totaling 1413 tonnes, reflecting a 28 per cent YoY increase. EMD serves as a 100 per cent import substitution product, primarily utilised in pharmaceuticals and battery manufacturing.

In the March quarter, MOIL produced 4.83 lakh tonnes of manganese ore, achieving a growth of 20 per cent compared to the year-ago period. Sales during the fourth quarter also improved to 4.35 lakh tonnes, up by 11 per cent YoY.

The PSU’s board recommended final dividend of Rs. 2.55 per share of face value of ₹10 each. Thus, the total dividend for the year is Rs. 6.05 per share for the year (including paid interim dividend of Rs. 3.50 per share). This is 64 per cent than the last years’ total dividend.

Outlook

As the leading manganese ore producer in India, the company commands a significant market share of 46 per cent and boasts extensive reserves. According to its FY23 annual report, MOIL holds approximately 101 million tonnes of manganese ore resources out of India’s total 503 million tonnes, representing a substantial 20 per cent share.

In response to emerging opportunities and increasing demand, the company has strategically ramped up investments both domestically and internationally. MOIL is actively developing its existing mines while exploring potential opportunities for new ones. Additionally, it is focusing on acquiring adjacent areas to its current mines to diversify its projects.

Also Read: HAL hits 8% upper circuit after net profit rises 52% to ₹4,308 crore in March quarter, revenue up 18% YoY

MAIL Share Price Trend

Shares of MOIL opened at ₹439.95 and gained 19.24 per cent to hit a fresh 52-week high of ₹524.60 before settling 19.99 per cent higher at ₹524.60 apiece on the BSE. According to Trendlyne data, MOIL has given better returns to investors compared to Nifty 50 and Sensex in the last one year.  

In the past one month, MOIL gave 56.37 per cent returns, against 1.44 per cent and 1.33 per cent returns by Nifty 50 and Sensex respectively. In the last one year, MOIL has given a massive 230.2 per cent returns to investors as against 22.86 per cent and 19.85 per cent returns by Nifty 50 and Sensex respectively.

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Published: 17 May 2024, 06:53 PM IST