MMTC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 1.9
| Stock Code | MMTC | Market Cap | 9,447 Cr. | Current Price | 63.0 ₹ | High / Low | 88.2 ₹ |
| Stock P/E | 229 | Book Value | 10.9 ₹ | Dividend Yield | 0.00 % | ROCE | 8.33 % |
| ROE | 5.69 % | Face Value | 1.00 ₹ | DMA 50 | 64.1 ₹ | DMA 200 | 65.2 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | -0.07 % | PAT Qtr | 4.88 Cr. | PAT Prev Qtr | 36.7 Cr. |
| RSI | 46.2 | MACD | 0.73 | Volume | 34,09,869 | Avg Vol 1Wk | 1,01,89,677 |
| Low price | 42.6 ₹ | High price | 88.2 ₹ | PEG Ratio | 7.90 | Debt to equity | 0.02 |
| 52w Index | 44.7 % | Qtr Profit Var | -56.7 % | EPS | 1.13 ₹ | Industry PE | 32.3 |
📊 Financials: MMTC has a market cap of 9,447 Cr. with quarterly PAT falling sharply to 4.88 Cr. from 36.7 Cr. ROE at 5.69% and ROCE at 8.33% indicate weak efficiency. Debt-to-equity ratio of 0.02 shows an almost debt-free balance sheet, but profitability remains poor. EPS is low at 1.13 ₹, reflecting thin margins and weak earnings visibility.
💹 Valuation: Current P/E of 229 is extremely high compared to the industry average of 32.3, suggesting severe overvaluation. P/B ratio is ~5.78 (63 ₹ / 10.9 ₹), which is expensive relative to book value. PEG ratio of 7.90 highlights overpriced growth. Intrinsic value appears much lower than current market price, making the stock unattractive for fresh entry.
🏭 Business Model & Competitive Advantage: MMTC operates in trading of minerals, metals, and commodities. While it has government backing and a long-established presence, its competitive advantage is limited due to thin margins, high cyclicality, and dependence on global commodity prices.
📈 Entry Zone: With RSI at 46.2 (neutral) and support near 42–48 ₹ (close to 52-week low), entry is advisable only at lower levels. Current price at 63 ₹ remains expensive relative to fundamentals.
🕰️ Long-Term Holding Guidance: MMTC is fundamentally weak with poor profitability and stretched valuations. Long-term holding is not recommended unless earnings visibility improves significantly and valuations normalize.
Positive
- Debt-to-equity ratio at 0.02 shows near debt-free status.
- Government backing provides some stability.
- Established presence in commodity trading.
Limitation
- Extremely high P/E (229) compared to industry average (32.3).
- Weak ROE (5.69%) and ROCE (8.33%).
- Quarterly PAT declined sharply (4.88 Cr. vs 36.7 Cr.).
- PEG ratio of 7.90 indicates overpriced growth.
Company Negative News
- Sharp decline in quarterly profitability.
- Institutional investors (FII/DII) reducing holdings.
Company Positive News
- Debt-free balance sheet provides financial stability.
- Government support ensures continuity of operations.
Industry
- Commodity trading sector is cyclical and highly dependent on global prices.
- Industry P/E at 32.3 highlights MMTC’s severe overvaluation.
Conclusion
⚖️ MMTC is a weak fundamental play with poor profitability and extreme overvaluation. Entry is advisable only near 42–48 ₹, and long-term holding is not recommended unless earnings improve substantially.
Would you like me to also prepare a comparative HTML table showing MMTC vs. industry averages for quick visualization of valuation and profitability gaps?