MRPL - Investment Analysis

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

Investment Rating: 2.4

📊 Fundamental Analysis

MRPL (Mangalore Refinery and Petrochemicals Ltd.) currently shows signs of financial stress and volatility, making it a high-risk candidate for long-term investment.

Metric Value Implication

Market Cap ₹23,034 Cr. Mid-cap PSU; decent scale but cyclical exposure

Stock P/E Not available Negative EPS — company is loss-making

PEG Ratio Not available Cannot assess growth-adjusted valuation due to earnings volatility

ROE / ROCE 0.43% / 4.33% Extremely weak — poor capital efficiency

Dividend Yield 2.28% Decent yield — but not enough to offset risk

Debt-to-Equity 1.01 Moderate leverage — manageable but adds pressure during downturns

EPS ₹-1.64 Negative — recent losses

Profit Growth (QoQ) -470% Severe decline — major red flag

📉 Technical & Trend Analysis

Current Price: ₹131

DMA 50 / DMA 200: ₹142 / ₹145 — trading below both; bearish trend

RSI: 39.0 — approaching oversold zone

MACD: -0.71 — bearish momentum

Volume: Below average — declining interest

⚠️ Is It a Good Long-Term Investment?

No — not at this stage. MRPL is facing operational and profitability challenges. With negative earnings, poor ROE/ROCE, and sharp profit contraction, it lacks the fundamentals for long-term compounding. It may appeal to speculative or turnaround investors, but not to conservative long-term holders.

🎯 Ideal Entry Price Zone

Buy Zone: ₹105–₹115 (only for speculative entry)

Near recent support and oversold RSI

Entry only if signs of earnings recovery emerge

Watch for MACD reversal and volume spike

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: Short-term (3–6 months) unless turnaround is confirmed

Exit Strategy

Partial Exit near ₹145–₹155 if technicals improve

Full Exit if next quarter shows continued losses or ROE remains < 2%

Reassess based on crude price trends and refining margins

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