Buy Mrpl, target price Rs 255: IIFL Securities

IIFL Securities recommends buying MRPL (Mangalore Refineries and Petrochemicals Limited) at the current market price of Rs 241.2. The brokerage firm has set a target price of Rs 255 for the stock, indicating a potential upside of around 5.7%. The buy call is based on the company's strong financial performance in recent quarters, its healthy balance sheet, and its positive outlook for the future. MRPL is a leading refiner in India with a strong presence in the southern market. The company has been benefiting from the rising demand for refined products in India, and its margins have been improving in recent quarters.

About Mrpl:

MRPL (Mangalore Refinery & Petrochemicals Ltd.) is a leading oil refining and marketing company listed on the National Stock Exchange (NSE) of India. It is a subsidiary of Oil & Natural Gas Corporation (ONGC), India's largest oil and gas exploration and production company. MRPL operates a state-of-the-art refinery in Mangalore, Karnataka, with a capacity of 15 million metric tonnes per annum. The company produces a wide range of petroleum products, including petrol, diesel, aviation fuel, and petrochemicals. MRPL is also a major exporter of petroleum products to countries across the globe.

52 Week Price Trend:

MRPL's current market price (CMP) of Rs 241.2 represents a significant recovery from its 52-week low of Rs 49.2, but it still falls short of its 52-week high of Rs 289.25. This suggests that the stock has been on a positive trajectory, regaining over 390% of its value from its lowest point in the past year. The company's strong financial performance and favorable industry outlook may continue to support its growth in the near term, making it an attractive option for investors seeking value and potential returns.

Stratzy's MOST Analysis:

MRPL's AA- rating from Stratzy's MOST framework indicates a medium fundamental risk level. This rating is based on a positive assessment of MRPL's management, outlook, safety, and trend. The company's strong management team, promising outlook, adherence to safety standards, and favorable market trend contribute to its overall positive rating.

Company's Fundamentals:

MRPL (NSE: MRPL) is a company listed on the National Stock Exchange (NSE) in India. Its financial ratios provide insights into its valuation and dividend distribution. The Stock PE ratio of 9.77 indicates that investors are willing to pay Rs. 9.77 for every Re. 1 of earnings per share, suggesting a moderate valuation. The PB Ratio of 3.58 implies that the stock is priced at 3.58 times its book value, indicating that it is undervalued compared to its assets. The Dividend Yield of 0.41% suggests that investors receive a dividend of Rs. 0.41 for every Rs. 100 invested, reflecting a conservative dividend policy.

Fundamental and Technical information provided in this blog were last updated on 24 Apr, 2024

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