MOIL gains after securing mining lease for manganese ore in Madhya Pradesh

MOIL rose 2.15% to Rs 316.10 at 14:15 IST on BSE after the company said that Government of India has granted approval for company's mining lease for manganese ore over an area of 48.974 Ha land at Balaghat District in Madhya Pradesh.

The announcement was made during market hours today, 2 December 2014.

Meanwhile, the S&P BSE Sensex was down 83.37 points or 0.29% at 28,476.25.

On BSE, so far 57,000 shares were traded in the counter as against average daily volume of 17,176 shares in the past one quarter.

The stock hit a high of Rs 324.05 and a low of Rs 307 so far during the day. The stock had hit a 52-week high of Rs 341 on 26 May 2014. The stock had hit a 52-week low of Rs 210.50 on 10 February 2014.

The stock had underperformed the market over the past one month till 1 December 2014, sliding 0.32% compared with Sensex's 2.49% rise. The scrip had also underperformed the market in past one quarter, advancing 3.62% as against Sensex's 6.3% rise.

The mid-cap company has equity capital of Rs 168 crore. Face value per share is Rs 10.

MOIL said it has received a communication regarding approval of mining lease from Mineral Resource Department of Government of Madhya Pradesh. The said area falls under Ukwa Mine of MOIL. Now, the company will take necessary steps, as may be required, for execution of the mining lease with the Government of Madhya Pradesh, MOIL said.

MOIL's net profit rose 22.7% to Rs 111.14 crore on 7.1% growth in net sales to Rs 242.87 crore in Q2 September 2014 over Q2 September 2013.

MOIL operates 10 mines, six located in the Nagpur and Bhandara districts of Maharashtra and four in the Balaghat district of Madhya Pradesh.

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