MRPL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 2.6

📊 Core Financials Overview

Profit Volatility: A sharp reversal from ₹363 Cr profit to –₹272 Cr loss this quarter — a –515% swing, signaling severe margin compression or inventory losses.

Return Metrics

ROCE: 4.36% — weak capital efficiency.

ROE: 0.40% — negligible shareholder return.

EPS: –₹1.64 — negative earnings per share, reflecting current unprofitability.

Debt Profile: Debt-to-equity of 1.02 — moderately leveraged, which adds risk during downturns.

Cash Flow: Not disclosed, but negative earnings and high debt suggest strained cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio Not applicable Due to negative earnings, valuation via P/E is unreliable.

P/B Ratio ~1.78 Reasonable, but not compelling given weak ROE.

PEG Ratio Not available Lack of earnings growth makes PEG irrelevant.

Intrinsic Value Likely below current price Due to recent losses and low return metrics.

🧠 Business Model & Competitive Advantage

MRPL (Mangalore Refinery and Petrochemicals Ltd.) operates one of South Asia’s most advanced refineries with a capacity of 15 million metric tonnes per annum. Its business model includes

Upstream & Downstream Integration: Crude sourcing and refining into high-value products like diesel, LPG, bitumen, and petrochemicals

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Retail Expansion: Operates 101 fuel outlets under the ‘HiQ’ brand across Karnataka and Kerala

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Export Revenue: Diversifies income through international sales and by-products

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Technological Edge: Incorporates hydrocrackers, delayed cokers, and polypropylene units for product diversification

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Despite its infrastructure and scale, MRPL’s profitability is highly sensitive to crude price volatility, refining margins, and regulatory shifts.

📈 Technical & Sentiment Signals

RSI: 58.5 — neutral zone, no strong momentum.

MACD: Slightly negative — mild bearish sentiment.

Volume: Above average — indicates active trading, possibly speculative.

DMA 50/200: Price below 200 DMA — suggests medium-term weakness.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹115–₹125 — near support levels and below moving averages.

Long-Term View: MRPL is a cyclical and capital-intensive play. While its infrastructure and export capabilities are strong, current financials are weak. Suitable only for risk-tolerant investors betting on a turnaround in refining margins and crude dynamics. Dividend yield of 2.29% offers some cushion.

You can explore MRPL’s full business model breakdown or its financial profile on Screener for deeper insights. Let me know if you'd like a comparison with IOC or BPCL to assess sector positioning.

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vizologi.com

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www.screener.in

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