At a Glance
India’s manganese kingpin, MOIL Ltd, dropped its Q1 FY26 results, and investors are feeling more bruised than a miner after a rockslide. Net Profit nosedived 66% YoY to ₹52 Cr, and revenue shrank 29% to ₹348 Cr. Stock crashed 5.9% to ₹347 – because apparently, the market hates bad ore more than bad jokes.
Introduction
MOIL is a PSU that digs up manganese ore, the critical ingredient for steel production and battery tech. While global demand for manganese is rising, MOIL seems to be stuck in the Jurassic era with volatile earnings, patchy volumes, and a dividend that’s decent but not enough to offset the operational pain.
Business Model (WTF Do They Even Do?)
- Core: Mining and selling manganese ore, with a 53% market share in India.
- Special Sauce: Only Indian producer of Electrolytic Manganese Dioxide (EMD), used in batteries.
- Revenue Mix: Ore sales (bulk), EMD (niche), and a sprinkle of other minerals.
- PSU Perk: Debt-free and state-backed, but sluggish in modernization.
Verdict: Cash-rich dinosaur with a side hustle in batteries.
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹348 Cr (-29% YoY)
- EBITDA: ₹79 Cr (OPM 23%)
- PAT: ₹52 Cr (-66% YoY)
- EPS: ₹2.5
FY25 Recap
- Revenue: ₹1,585 Cr
- PAT: ₹382 Cr
- ROE: 15%
- ROCE: 19%
Commentary: OPM fell from 32% to 23% QoQ. Lower ore prices and volumes crushed margins.
Valuation
- P/E Method
- EPS (TTM): ₹13.8
- Industry P/E: ~18x
- Fair Value ≈ ₹13.8 × 18 = ₹250
- P/B Method
- Book Value: ₹130
- CMP/BV: 2.7x
- Fair Value ≈ ₹300–₹350
- DCF Approach (Ore Realism)
- Considering cyclicality, DCF gives a range of ₹280–₹360.
🎯 Fair Value Range: ₹280 – ₹360
Current price ₹347 sits at the upper edge of fair value.
What’s Cooking – News, Triggers, Drama
- Volume Decline: Ore sales tanked due to weak steel demand.
- Battery Play: EMD production is a potential growth trigger if EV adoption soars.
- Dividend: Payout 34% keeps PSU investors happy.
- Risk: Global manganese prices and Chinese dumping can spoil the party.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 3,211 |
| Liabilities | 573 |
| Net Worth | 2,434 |
| Borrowings | 0 |
Remarks: Cleanest PSU balance sheet – no debt, cash-rich.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 212 | 253 | 434 |
| Investing | -102 | -141 | -338 |
| Financing | -122 | -85 | -134 |
Remarks: Operating cash strong; aggressive capex (CWIP ₹465 Cr) is eating free cash.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 15% |
| ROCE | 19% |
| P/E | 25.2x |
| PAT Margin | 19% |
| D/E | 0.0 |
Remarks: ROE good for PSU, but P/E pricey for a commodity player.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,339 | 1,447 | 1,585 |
| EBITDA | 369 | 438 | 528 |
| PAT | 251 | 293 | 382 |
Remarks: FY25 was a strong year – Q1 FY26 signals a cooling phase.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Lloyds Metals | 6,721 | 1,450 | 55x |
| NMDC | 23,905 | 6,532 | 10x |
| MOIL | 1,440 | 281 | 25x |
| GMDC | 2,765 | 666 | 19x |
Remarks: MOIL trades expensive vs NMDC but cheaper than Lloyds.
Miscellaneous – Shareholding, Promoters
- Promoters: 64.7% (Govt. of India)
- FIIs: 6.2% (rising)
- DIIs: 6.6% (falling)
- Public: 22.5%
Observation: Strong PSU holding but limited float movement.
EduInvesting Verdict™
MOIL is the clean, dividend-paying PSU you wouldn’t mind taking home to your mother-in-law. But commodity cycles don’t care about your feelings – manganese prices and steel demand dictate everything.
SWOT Quickie
- Strengths: Debt-free, 53% domestic market share, strong cash.
- Weaknesses: Cyclicality, dependence on ore prices, sluggish growth.
- Opportunities: EV battery segment (EMD), capex-driven production boost.
- Threats: Global oversupply, PSU lethargy, volatile earnings.
Final Word: At ₹347, MOIL is not screaming “cheap,” but it’s not overpriced either. Hold if you love dividends and patience; buy only if you can stomach the ore-cycle swings.
Written by EduInvesting Team | 30 July 2025
SEO Tags: MOIL Q1 FY26, MOIL Share Analysis, PSU Metal Stocks
