Dear Sir/Madam,
MOIL is a state owned company engaged in the business of mining manganese ore for over four decades. It is a leader in the domestic market accounting for 50% of the total production. The company has been conferred the *Mini Ratna – Category I* status by the government. The company also operates two wind power plants with a total capacity of 20MW. *Investment Rationale* · MOIL is the largest manganese ore producer in the country contributing 50% to the total production. In FY10, it produced ~1.1mn tonnes of manganese ore. · The company has 21.7mn tonnes of proved reserves of which 55.0% are of medium to higher grade. It does not have any reserves with manganese content below 30%. · Domestic steel capacity is expected to double by 2012, translating to demand for 4.2mn tonnes of manganese ore. · The company is expanding its production facilities by 465,000MT at a capital outlay of Rs 7,500mn. These facilities are expected to come online in phases by 2016. · As a part of MOIL’s strategy to integrate forwards it has entered into a JV with SAIL and Rashtriya Ispat Nigam to manufacture ferro manganese and silico manganese. *Valuation* At the upper band of Rs 375, the issue is available at a P/E of 9.5x based on annualised H1FY11 EPS of Rs 39.5. The company's international peers are also trading in the P/E range of 10.7-25.3x. Given the company's leadership position in India and huge growth prospects of the manganese ore industry augur well for the company. At current levels the issue is attractively valued and we recommend *‘SUBSCRIBE’*. Please click here<http://www.spacapital.com/admin/pdffile3/MOIL%20-%20IPO%20Note%20-%20SPA%20Sec%20-%20Subscribe.pdf>for the detailed report. -- Thanks & Regards, Abhishek Kothari ----------------------------------------------------------------------------- Let Success be Your Achievement and not Your Goal ----------------------------------------------------------------------------- -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
