IIFL Securities's Stock Idea: Buy Mrpl with Target Rs 252

IIFL Securities has issued a buy recommendation for MRPL stock with a target price of Rs 252, representing an upside potential of around 4% from the current market price of Rs 242.9. The research firm believes that the company's strong financial performance, driven by higher refining margins and inventory gains, coupled with its plans to expand its petrochemical business, position it well for future growth. MRPL's strategic location, access to crude oil supplies, and ongoing modernization initiatives are also seen as positive factors.

About Mrpl:

Mangalore Refinery and Petrochemicals Limited (MRPL) is an Indian oil refining and petrochemicals company headquartered in Mangalore, Karnataka. It is a subsidiary of Oil and Natural Gas Corporation (ONGC). MRPL operates a 15 million metric tons per annum (MMTPA) oil refinery at Mangalore. The refinery primarily processes crude oil imported from the Middle East and Africa. MRPL also produces a range of petrochemical products, including propylene, polypropylene, and benzene. The company has a strong presence in the domestic market and exports its products to over 30 countries.

52 Week Price Trend:

MRPL (NSE: MRPL), a subsidiary of ONGC, is currently trading at Rs 242.9, which falls within its 52-week range of Rs 49.2 (low) and Rs 289.25 (high). This suggests that the stock is approaching its 52-week high and has experienced significant growth over the past year. MRPL's strong financial performance and favorable industry outlook make it an attractive investment opportunity. Despite recent market volatility, the stock has shown resilience and could potentially continue its upward trend, offering investors the potential for capital appreciation.

Stratzy's MOST Analysis:

MRPL's AA- rating from Stratzy's MOST framework indicates low fundamental risks. This rating is based on a comprehensive evaluation of MRPL's management, outlook, safety, and trend. The framework assigns scores to each of these pillars and combines them to create an overall score. This rating suggests that MRPL has strong management, a positive outlook, a sound safety record, and a favorable trend, making it a relatively low-risk investment.

Company's Fundamentals:

MRPL (NSE:MRPL) is a stock listed on the National Stock Exchange of India (NSE). It has a Price-to-Earnings (PE) ratio of 9.77, indicating that investors are willing to pay Rs. 9.77 for every rupee of earnings. The Price-to-Book (PB) ratio of 3.58 suggests that the market value of MRPL's assets is 3.58 times higher than its book value. Lastly, the Dividend Yield of 0.41% implies that investors can expect to receive Rs. 0.41 for every Rs. 100 invested in MRPL shares annually.

Fundamental and Technical information provided in this blog were last updated on 11 Jul, 2024

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