We had given the details and review about the much awaited Manganese Ore IPO in our article Manganese Ore IPO: Review Analysis & Details. Today, we continue on the same topic covering the details about the expert opinions for the Manganese Ore IPO as per the various market voices and whether the investors should subscribe to this MOIL IPO or not.
In general, the market mood is that Manganese Ore IPO should be subscribed to
Many experts and analysts believe that the offered price band of Manganese Ore IPO which is set at Rs 340-375 per share competitive enough for investors to give it a shot through the IPO.
Compared to its peers and other companies in the ore business, this IPO looks attractive when one sees it from the PE multiple ratio. At the lower and upper price bands, the PE multiple is hovering from around 8.5 to 9.5 times the FY11 earnings, which makes it real attractive. If you look at the past 2 years of performance of this company, you will see that the performance has not been upto the mark. However, that can be attributed to the general global recession phenomenon and problems across the world economy. Going forward, outlook appears to be good and hence this company is expected to perform well. For long term investment horizon, this company is expected to give good returns with respect to the IPO price band of Rs 340-375 per share. For the long term investors, the situation is expeted to be good.
Dont expect real big returns of 30% or so from MOIL IPO, as it happened with Coal India IPO.
India is a fast growing market and Manganese Ore holds the monopoly in Indian Manganese market. Analysts believe that more technological advances will help Manganese Ore to get more profits in long term, so it is recommended even for a long term hold.
Investors should take the call as per their risk appetite. These are expert opinions which are subject to market risks. See more details on Hindustan Copper FPO IPO: Review and the upcoming Shipping Corporation SCI FPO IPO: Review
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