MOIL - Cut in ore prices for 4QFY13f leads to earnings downgrade - Avendus

MOIL's Dec12 EBITDA was in line with estimates at INR1.14bn. However, higher other income boosted net profit, which stood at INR1.13bn compared to our estimates of INR1.07bn.

Manganese ore prices have been reduced for the quarter ended Mar13f by 5% compared to our estimates of remaining stable. This has led us to lower our FY13f-FY15f EBITDA by 5% and net profit estimates by 3.5%. We cut our Dec13 TP to INR288 based on the historical average (Jan12-Feb13) P/E and EV/EBITDA multiple.

Cash and cash equivalents of INR145/share, as on Dec12, cushions a downside. Correction in the stock price during the last one month led us to maintain an Add rating.

Source : Equity Bulls

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