MRPL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | MRPL | Market Cap | 26,126 Cr. | Current Price | 149 ₹ | High / Low | 215 ₹ |
| Stock P/E | 13.5 | Book Value | 80.8 ₹ | Dividend Yield | 2.68 % | ROCE | 17.7 % |
| ROE | 14.2 % | Face Value | 10.0 ₹ | DMA 50 | 168 ₹ | DMA 200 | 163 ₹ |
| Chg in FII Hold | 1.36 % | Chg in DII Hold | -0.71 % | PAT Qtr | 119 Cr. | PAT Prev Qtr | 1,445 Cr. |
| RSI | 36.9 | MACD | -7.82 | Volume | 22,98,327 | Avg Vol 1Wk | 43,50,643 |
| Low price | 120 ₹ | High price | 215 ₹ | PEG Ratio | -1.35 | Debt to equity | 1.08 |
| 52w Index | 30.3 % | Qtr Profit Var | -67.1 % | EPS | 11.0 ₹ | Industry PE | 14.8 |
📊 Core Financials: MRPL reported quarterly PAT of ₹119 Cr (down sharply from ₹1,445 Cr), showing significant profit decline. ROE at 14.2% and ROCE at 17.7% reflect moderate efficiency. Debt-to-equity ratio of 1.08 indicates high leverage compared to peers. EPS at ₹11.0 is modest, highlighting weak profitability in recent quarters.
💹 Valuation Indicators: Stock P/E of 13.5 is slightly below industry average (14.8), suggesting fair valuation. Book value at ₹80.8 vs CMP ₹149 shows a reasonable premium. PEG ratio of -1.35 indicates negative earnings growth, limiting valuation attractiveness. Intrinsic value appears lower than CMP, reflecting caution for investors.
🏭 Business Model & Advantage: MRPL operates in refining and petroleum products, with competitive advantage in scale and government backing. However, profitability is highly cyclical, dependent on crude oil prices and refining margins. Recent profit decline highlights vulnerability to industry volatility.
📈 Entry Zone & Holding Guidance: The stock trades below DMA 50 (₹168) and DMA 200 (₹163), showing weakness. RSI at 36.9 indicates oversold conditions. A better entry zone would be closer to ₹135–₹145. Long-term holding is viable only for investors comfortable with cyclical risks in the refining sector.
Positive
- ✅ Dividend yield at 2.68%, providing income support
- ✅ EPS at ₹11.0, reflecting stable earnings base despite volatility
- ✅ FII holding increased by 1.36%, showing foreign investor confidence
Limitation
- ⚠️ Quarterly PAT decline (₹1,445 Cr → ₹119 Cr)
- ⚠️ High debt-to-equity ratio (1.08), leverage risk
- ⚠️ PEG ratio of -1.35, indicating negative earnings growth
Company Negative News
- 📉 DII holding decreased by 0.71%, showing reduced domestic institutional confidence
Company Positive News
- 📈 FII holding increased by 1.36%, reflecting foreign investor interest
- 📈 Dividend yield at 2.68% supports investor returns
Industry
- 🌐 Refining & petroleum industry PE at 14.8, reflecting moderate valuations
- 🌐 Industry demand driven by energy consumption and global crude cycles
Conclusion
🔎 MRPL shows moderate efficiency and dividend support but faces significant profit decline and high leverage. Entry near ₹135–₹145 offers better risk-reward. Long-term investors should be cautious, as profitability is highly cyclical and dependent on crude oil price movements.
For deeper insights, you could explore a peer comparison or a valuation analysis to assess its position against competitors and intrinsic value.