Target: ₹425
CMP: ₹326.45
Recently we visited MOIL’s Balaghat and HCP’s Malanjkhand (MCP) underground (UG) mines. The two-day programme covered various aspect of mining operations, including the upcoming high-speed shaft project and ferro manganese facility at Balaghat and the crushing and concentrator plant at MCP.
We visited 13.5 level (about 390 metres below surface) via Holmes shaft. The existing shaft has reached a working depth of 436 metres, while the upcoming 7.5 metres high-speed shaft has the potential to reach depths of 750 metres and will serve as an entry point from levels 15 to 27.5. The high-speed shaft is about 3x faster than Holmes Shaft and expected to be commissioned and stabilised over the next six months, and the benefits of higher volume is expected to accrue from FY27.
The mine currently has R&R of 25.435 mt and total lease area of 259.489Ha, supported by an EC for 650,500 tonne. Further, prospecting licence covering 202.501Ha with additional R&R of about 10 mt is under the due consideration of DGM, Bhopal. The mine currently produces ore with grades ranging between 25-48 per cent and the company expects ore volume of >0.4m tonne in FY26, eventually surpassing 0.55m tonne by FY28.
With MOIL being the largest manganese merchant miner in India along with clear visibility of volume growth driven by the high-speed shaft, we maintain Buy rating on the stock with a TP of ₹425.