MOIL Ltd - ACCUMULATE - TP Rs.265 - Result Update - Kotak

- MOIL's operating performance during the quarter was boosted by better realisation. Net sales during the quarter grew 46.3% YoY to Rs2.87bn (down 15.5% QoQ). EBITDA during the quarter grew multifold YoY to Rs1.17 bn, with an EBITDA margin of 40.6% (est. of 39%). PAT came in at Rs927 mn. The company has hiked prices in the month of October by 7.5%, which should be reflected from 3QFY18 onwards. Given higher than expected realisation in 1HFY18, we have revised our assumptions higher, resulting in upwards revision in estimates to Rs16.7 (earlier Rs12.2) and Rs19.5 (earlier Rs14.8) for FY18E and FY19E, respectively. Given its strong business model, robust balance sheet with strong liquidity positions (cash and cash equivalents of Rs24.3bn at the end of 1HFY18 and its dominant position in the domestic and further improvement likely in realisation, supports our positive stance on the stock. Given the recent run-up in the stock price, we recommend ACCUMULATE (earlier BUY), with a revised target price of Rs265 (earlier Rs205). The stock is currently trading at 8.x/6.2x FY18/FY19E EV/EBITDA.

Shares of MOIL LTD. was last trading in BSE at Rs.245.5 as compared to the previous close of Rs. 250.5. The total number of shares traded during the day was 76471 in over 1431 trades.

The stock hit an intraday high of Rs. 252.2 and intraday low of 244.5. The net turnover during the day was Rs. 18884421.

Source : Equity Bulls

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