MOIL gains after signing of MoU with Government of Madhya Pradesh

MOIL rose 2.25% to Rs 325.50 at 13:15 IST on BSE after the company signed a Memorandum of Understanding to conduct exploration and prospecting works in Madhya Pradesh.

The announcement was made after market hours yesterday, 27 October 2016.

Meanwhile, the BSE Sensex was up 16.58 points, or 0.06%, to 27,932.48

On BSE, so far 42,000 shares were traded in the counter, compared with average daily volume of 36,475 shares in the past one quarter. The stock hit a high of Rs 328.80 and a low of Rs 322.35 so far during the day. The stock hit a 52-week high of Rs 330 yesterday, 27 October 2016. The stock hit a record low of Rs 180.10 on 12 February 2016. The stock had outperformed the market over the past 30 days till 27 October 2016, rising 24.6% compared with 1.33% decline in the Sensex. The scrip also outperformed the market in past one quarter, gaining 30.42% as against Sensex's 0.48% decline.

The mid-cap company has equity capital of Rs 133.19 crore. Face value per share is Rs 10.

MOIL has signed a Memorandum of Understanding (MoU) jointly with Government of Madhya Pradesh, Mineral Resources Department and Madhya Pradesh State Mining Corporation (MPSMCL), a PSU under Government of Madhya Pradesh, to conduct exploration and prospecting works in Madhya Pradesh. The MoU also envisages formation of a Joint Venture Company (JVC) between MOIL (51%) and MPSMCL (49%), in case of availability of ore is proved, in any area, MOIL said. The MoU is aimed at increasing the mineral resources in Madhya Pradesh, the company said.

MOIL's net profit declined 47.54% to Rs 47.15 crore on 0.42% rise in net sales to Rs 183.53 crore in Q1 June 2016 over Q1 June 2015.

MOIL produces and sells different grades of manganese ore. Government of India currently holds 75.58% stake in MOIL (as per the shareholding pattern as on 11 October 2016).

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