MOIL shares rally 6% after the PSU increases manganese ore prices

MOIL Ltd shares zoomed 6% on Friday after the Miniratna public sector undertaking (PSU) raised the prices of select manganese ore. MOIL is India's largest producer of manganese ore, and it announced an upward price revision for certain grades of Manganese Ore and other products, effective March 1, 2024.

The prices of all the Ferro grades of manganese ore with a manganese content below Mn-44% have increased by 5% on the prevailing prices since February 1, 2024. The company said the price hike will prevail for the ongoing month.

For the Ferro grades of manganese ore with a manganese content of Mn-44% and more, the prices have been left at the prevailing rates for the month of March 2024. The prices of all SMGR (Mn-30% & Mn-25%), fines and chemical grades have also been kept the same, with effect from midnight of February 29, 2024, for the month of March.

The basic price of EMD has also been left the same, stated MOIL in an exchange notification on Thursday night.

The state-owned company’s shares have performed poorly in recent times, shedding over 21% in the last one month, and falling 14% over the last three. So far in the year, MOIL’s shares have declined 11%, however, rising significantly in the past year. The stock has soared nearly 85% over a one year period.

MOIL’s net profit in the quarter ended on December 31, 2023, increased by 36.9% on a year-on-year (YoY) basis to ₹54.1 crore compared to ₹39.5 crore in the same period last year, while net sales climbed slightly by 1.43% to ₹306.3 crore in the period versus ₹302 crore in the corresponding quarter of the previous fiscal year.

Shares of MOIL were trading 3.33% higher at ₹274.55 apiece on NSE at 2:44 pm.