MOIL Limited

MOIL (Manganese Ore India Limited) is a miniratna state-owned manganese-ore mining company headquartered in Nagpur, India. With a market share of 50%, it was the largest producer of manganese ore in India in the fiscal year 2008. MOIL Limited has been ranked #486 among the 500 top companies in India and 9th in the Mines and Metals Sector of the Fortune India 500 list for 2011. At present, MOIL operates 11 mines, six located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh. All these mines are about a century old. Except 4, rest of the mines are worked through underground method. The Balaghat Mine is the largest mine of the Company. The mine has now reached a mining depth of about 383 meters from the surface. Dongri Buzurg Mine located in the Bhandara district of Maharashtra is an opencast mine that produces manganese dioxide ore used by dry battery industry. This ore in the form of manganous oxide is used as micro-nutrient for cattle feed and fertilizers. MOIL fulfils about 50% of the total requirement of dioxide ore in India. At present, the annual production is around 1.1 million tonne which is expected to grow in the coming years. MOIL produces and sells different grades of Manganese Ore. They are:-• High Grade Ores for production of Ferro manganese• Medium grade ore for production of Silico manganese• Blast furnace grade ore required for production of hot metal and• Dioxide for dry battery cells and chemical industries. MOIL has set up a plant based on indigenous technology to manufacture 1,000 MT per annum capacity of Electrolytic Manganese Dioxide (EMD). This product is used for the manufacture of dry battery cells. EMD produced by the Company is of good quality and well accepted by the market. A Ferro manganese plant having a capacity of 10,000 MT per annum was also set up in 1998 by MOIL for value addition. The financials of the company looks good, RoNW is 13.77% and at CMP its looks fairly priced. Price difference is around 7% at CMP and acceptance ration as per current share holding for retail will be around 10% for retail, but it may be possible that this ratio may go down as more people will buy for buyback and so we may expect the final acceptance ratio may be around 20% and profit may be 1-2%. So we give AVOID rating to this buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal