IIFL Securities's Stock Idea: Buy Mrpl with Target Rs 255

IIFL Securities recommends buying MRPL shares at the current market price of Rs 241.2 with a target price of Rs 255. The company's financial performance has been strong, with revenue and profit growth. The stock is also technically attractive, with a breakout above its key moving averages. Investors can consider buying the stock for potential upside.

About Mrpl:

MRPL (Mangalore Refinery and Petrochemicals Limited) is an Indian oil refining and petrochemicals company headquartered in Mangalore, Karnataka. It is a subsidiary of ONGC (Oil and Natural Gas Corporation), India's largest oil and gas company. MRPL operates a refinery with a capacity of 15 million metric tonnes per annum (MMTPA) and produces a range of refined products, including gasoline, diesel, kerosene, and liquefied petroleum gas (LPG). The company also produces petrochemicals, such as polypropylene, polyethylene, and solvents. MRPL has a strong presence in the Indian market and exports its products to various countries around the world.

52 Week Price Trend:

MRPL, trading at Rs 241.2, has experienced significant volatility in the past year, ranging from a high of Rs 289.25 to a low of Rs 49.2. This volatility suggests that the stock may be influenced by various factors, such as fluctuations in crude oil prices, changes in government policies, or company-specific developments. Investors considering MRPL should carefully evaluate these factors and the company's overall financial health before making any investment decisions.

Stratzy's MOST Analysis:

MRPL has received an AA- rating by Stratzy's MOST framework. This indicates a medium fundamental risk. The framework evaluates companies based on Management, Outlook, Safety, and Trend. MRPL's rating suggests that it has a well-managed organization, a positive future outlook, strong financial stability, and is in line with market trends. This rating implies that MRPL has a sound business model and is a relatively safe investment.

Company's Fundamentals:

MRPL, listed on NSE, has a Stock PE of 9.77, indicating that its current share price is 9.77 times its earnings per share. The PB Ratio of 3.58 suggests that the company's market value is 3.58 times its book value, indicating potential undervaluation. Additionally, the Dividend Yield of 0.41% implies that investors can expect a modest return on their investment through dividend payments. These metrics provide insights into MRPL's financial performance and market valuation, helping investors assess its investment potential.

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

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