MOIL Ltd shares surged as much as 8.5% in intra-day trade on Thursday after the state-run mining company revised prices of different grades of manganese ore and other products with effect from 1 January 2020.
Shares of MOIL were trading at Rs 153.30, up 4.8%, after hitting the day’s high of Rs 158.80. The stock has lost nearly 10% in the last one year compared with a 13% rise in the Nifty 50 index.
MOIL on Thursday said that the prices of all grades of manganese ore having Mn-44% and above have been increased by around 7.5% and all the other ferro grades of manganese ore having manganese below 44% have been increased by around 10% on the prices prevailing as on 31 December 2019.
The prices of SMGR grades (Mn-30% & Mn-25%) and all grades of Fines (except Balaghat Fines) have been increased by around 15% and price of Balaghat fines have been increased by 10% on the prices prevailing as on 31 December, it added.
The prices of all grades of the chemical have been increased by around 10% and the basic price of electrolytic manganese dioxide (EMD) has been increased by around 5%.
The company said ferro manganese/ferro manganese slag and some identified grades of manganese ore will continue to be sold by e-auction as well as through Metal Mandi (M3) of MSTC, in line with the existing price.
HSBC had in September upgraded MOIL to ‘buy’ from ‘hold’ with a target price of Rs 180 based on attractive valuations and rich dividends given by the company. The brokerage firm said that the state-owned company is supported by healthy margins from the low-cost operations.
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