 "Manganese ore production (Photo: PIB)")
Shares of MOIL hit over a decade high of Rs 256.90 as they surged 12 per cent on the National Stock Exchange (NSE) in Thursday's intraday trade after Quant Mutual Fund (MF) acquired 1.1 million equity shares of the company via open market on Wednesday.
On October 11, Quant MF Gilt Fund purchased 1.1 million equity shares, representing 0.54 per cent of total equity of MOIL, via block deal on the NSE, the exchange data shows. The mutual fund bought shares at a price of Rs 226.80 per share. The names of the sellers was not ascertained immediately.
Shares of the state-owned MOIL were trading at their highest level since December 2010. It had hit a record high of Rs 295 touched on December 15, 2010. Average trading volumes on the counter more than doubled today with a combined 5.2 million shares changing hands on the NSE and BSE till 09:46 AM. In comparison, the Nifty 50 was down 0.05 per cent at 19,800.70.
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In the past six months, the stock price of MOIL has zoomed 75 per cent, as against 11.1 per cent rise in the benchmark index.
MOIL had achieved the best ever six-monthly performance during April-September, 2023 (H1-FY24). Production of Manganese ore jumped to 8.15 lakh MT in H1-FY24, registering a growth of 45 per cent over corresponding period last year (CPLY). Production of 1.35 lakh MT in the month of September was the best-ever production for any September month since inception.
On sales front also, MOIL reported best ever six-monthly performance of 7.57 lakh MT in H1-FY24, with a remarkable growth of 54 per cent over CPLY.
Further, MOIL recorded the highest-ever production of Electrolytic Manganese Dioxide (EMD) during H1-FY24, registering a growth of 26 per cent over CPLY. EMD is a 100 per cent import substitution product, used mostly for pharmaceuticals and manufacturing of batteries.
As a leading manganese ore mining company, MOIL plays a crucial role in supplying high-quality manganese ore, an essential component in the production of steel and ferroalloys. Customers of MOIL primarily consist of steel companies, processors and ferroalloy producers engaged in the business of ferroalloys production. MOIL is the only producer of EMD in India, meeting the demand of pharmaceuticals, batteries & chemical companies.
In order to meet the requirement of manganese ore in future and maintain market leadership, MOIL has drawn a Strategic Management Plan-2030 (SMP-2030). As per the revised strategic plan, the company has planned to enhance its production to 3.50 million tonnes by 2030.
"Further, domestic requirement of manganese ore has increased substantially to meet not only the increased domestic production of steel but also the export of manganese based alloys. This has continuously made India a net importer of manganese ore and provides an opportunity to grow," MOIL said in its FY23 annual report.
With its current resource base of 101.39 million MT of manganese ore, MOIL is very well positioned to contribute to the India’s Steel demand growth given its dominant position, medium to high grade ore reserves, centrally located mines and strong customer ties.
"In order to meet the requirement of manganese ore in future, MOIL is exploring opportunities to get manganese ore mines in different states of the country besides making all possible efforts to covert Prospecting Leases to Mining Leases in already reserved manganese ore bearing areas," the company said.
