MMTC - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 2.6

📉 Fundamental Analysis Summary

MMTC Ltd. presents several red flags for long-term investment

ROE (5.86%) & ROCE (7.69%): Weak profitability metrics, indicating inefficient capital utilization.

PEG Ratio (3.50): Highly overvalued relative to growth; a PEG > 1.5 is generally unattractive.

P/E Ratio (101–113): Extremely high compared to industry average (34.4), suggesting speculative valuation

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EPS (₹0.58): Very low earnings per share.

Dividend Yield (0%): No income generation for long-term holders.

Book Value (₹11.4) vs Price (₹66): Trading at nearly 6x book value — not justified by fundamentals.

📈 Technical & Valuation Insights

Current Price: ₹66.0

DMA 50/200: ₹67.8 / ₹67.9 — price below both, indicating bearish trend.

RSI (40.2): Near oversold zone, but not a strong reversal signal.

MACD (-0.65): Bearish momentum.

Volume: Slightly below average — lack of strong buying interest.

Qtr Profit Var: -97.2% — alarming drop in profitability.

🎯 Ideal Entry Price Zone

Given the speculative nature and weak fundamentals

Fair Entry Zone: ₹42–₹50

Near 52-week low and previous support levels

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Only suitable for high-risk, short-term momentum traders

Long-term investors should avoid entry unless there's a significant turnaround in earnings and ROE.

🧭 Exit Strategy / Holding Period

If you already hold MMTC

Exit Strategy

Partial Exit near ₹70–₹75 if price rebounds on momentum

Full Exit if price drops below ₹60 and fundamentals continue to deteriorate

Holding Period: Not recommended for long-term holding unless

ROE improves to >10%

PEG drops below 1.5

Dividend reinstated

Watchlist Triggers

Government disinvestment or closure talks

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Legal or regulatory developments

Commodity cycle upturns (MMTC is exposed to metals and minerals)

⚠️ Final Verdict

MMTC is not a strong candidate for long-term investment due to poor profitability, high valuation, and lack of dividend. It may offer short-term speculative opportunities, but long-term investors should look elsewhere unless there's a clear turnaround in fundamentals.

Would you like me to suggest better PSU or trading sector alternatives with stronger metrics?

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bing.com

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www.moneycontrol.com

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in.tradingview.com

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www.moneycontrol.com

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