Centrum has a SUBSCRIBE recommendation with the following note,
MOIL, at the upper band, would trade at P/E of 8.2x and 7.6x for FY12 and FY13 respectively, while EV/EBITDA multiple would stand at 3.8x and 3.0x for the same period. Considering the steady growth plan and attractive valuation, we recommend ‘Subscribe’ to the issue.
Latin Manharlal Securities Pvt. Ltd has the following note,
At the given price band of `340-375, the stock is available at 9.6x-10.6x its post issue TTM EPS of `35.48. Based on 1HFY11 annualised EPS of `39.37, MOIL would trade at 9.5x its upper price band. Given the robust demand outlook for manganese ore and company-specific positives, we recommend Investors to SUBSCRIBE to this issue with a long term view.
Mehta Equities View,
MOIL IPO provides investor an opportunity to invest in the largest producer of manganese ore by volume in India. On valuations parse at the higher side of the price band i.e. Rs 375; the issue is available 13.5 x its FY’10 EPS and 12.2x on lower band price. On P/BV valuation the stock is available at 3.8 and 3.4 times which is available on discount when compared to is domestic & global peers which are trading at 4-5 times. We expect the revenues to grow substantially in future with improved margins in coming years. Hence, we advice investors should subscribe the IPO considering factors like largest and lowest cost producer of manganese ore, strong cash flows and a debt free company.