MMTC - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 2.3
| Stock Code | MMTC | Market Cap | 8,286 Cr. | Current Price | 55.2 ₹ | High / Low | 88.2 ₹ |
| Stock P/E | 201 | Book Value | 10.9 ₹ | Dividend Yield | 0.00 % | ROCE | 8.33 % |
| ROE | 5.69 % | Face Value | 1.00 ₹ | DMA 50 | 61.3 ₹ | DMA 200 | 65.3 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.03 % | PAT Qtr | 4.88 Cr. | PAT Prev Qtr | 36.7 Cr. |
| RSI | 29.8 | MACD | -2.71 | Volume | 13,10,717 | Avg Vol 1Wk | 13,62,136 |
| Low price | 42.6 ₹ | High price | 88.2 ₹ | PEG Ratio | 6.92 | Debt to equity | 0.02 |
| 52w Index | 27.8 % | Qtr Profit Var | -56.7 % | EPS | 1.13 ₹ | Industry PE | 32.7 |
- 📈 Revenue Growth: Weak, quarterly PAT dropped sharply from ₹36.7 Cr to ₹4.88 Cr
- 💰 Profit Margins: Thin margins, ROE at 5.69% and ROCE at 8.33%
- ⚖️ Debt Ratio: Debt-to-equity at 0.02, very low leverage
- 💵 Cash Flows: Limited profitability, weak EPS of ₹1.13
- 📊 ROE/ROCE: Below industry averages, inefficient capital use
- 📉 Valuation: P/E 201 vs Industry PE 32.7, extremely overvalued
- 📚 Book Value: ₹10.9, P/B ~5.06
- 📈 PEG Ratio: 6.92, indicates poor growth relative to valuation
- 🏢 Business Model: Trading-focused PSU, dependent on commodity cycles
- 🛡️ Competitive Advantage: Government backing, but limited differentiation in private sector competition
Positive
- ✅ Very low debt-to-equity ratio (0.02)
- ✅ Government-backed PSU with established trading network
- ✅ Strong liquidity with high trading volumes
Limitation
- ⚠️ Extremely high P/E ratio (201), far above industry average
- ⚠️ Weak profitability, EPS only ₹1.13
- ⚠️ ROE and ROCE below healthy benchmarks
- ⚠️ Dividend yield at 0%, no shareholder returns
Company Negative News
- 📉 Quarterly profit fell 56.7%, PAT dropped to ₹4.88 Cr
- 📉 FII and DII holdings slightly reduced
Company Positive News
- 🌍 Continued government support as a PSU
- 📦 Stable trading operations in metals and commodities
Industry
- 💹 Industry PE at 32.7, MMTC trades at a massive premium
- 📈 Commodity trading sector highly cyclical, dependent on global demand
Conclusion
MMTC shows weak fundamentals with poor profitability, high valuation, and limited growth prospects. Despite low debt and government backing, the stock is significantly overvalued relative to industry peers. Entry zone is only attractive near ₹42–45 (close to 52-week low). Long-term holding is not recommended unless profitability improves and valuations normalize.
Would you like me to prepare a peer benchmarking overlay comparing MMTC with other PSU trading companies like STC and Hindustan Copper, or should we focus on a sector rotation scan to identify stronger compounding opportunities in the metals/commodities space?
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