Is MRPL stock a buy in 2025? We analyze fundamentals, technicals, annual reports, and valuation to help you decide. Includes key ratios, charts, and investment strategy.
Introduction
Mangalore Refinery and Petrochemicals Ltd. (MRPL) is a small-cap oil refining company that has seen wild swings in its stock price. After crashing from its 52-week high of ₹259.90, MRPL is now trading at ₹143.24 (as of 24 Mar 2025)—up 35% YTD but still 45% below its peak.
Key Questions We Answer:
✅ Is MRPL fundamentally strong? (Profitability, debt, growth)
✅ What do technical charts say? (RSI, volume trends, resistance levels)
✅ Should you buy, hold, or sell MRPL? (Investment strategy)
Let’s dive deep into the fundamentals, technicals, and annual trends to uncover the truth.
Section 1: Fundamental Analysis of MRPL (2025)
1.1 Business Overview
| Metric | Value |
|---|---|
| Sector | Crude Oil & Refining |
| Market Cap | ₹25,132 Cr. (Small Cap) |
| Enterprise Value (EV) | ₹38,312 Cr. (Sept 2024) |
| Website | www.mrpl.co.in |
MRPL operates in a cyclical industry, heavily dependent on crude oil prices and refining margins.
1.2 Financial Health (Key Ratios)
| Ratio | MRPL (2024) | Industry Avg | Verdict |
|---|---|---|---|
| P/E Ratio | 30.50 | 21.66 | Overvalued |
| Debt-to-Equity | 0.94 | 1.50 | Low Debt |
| ROE (%) | 31.08 | 18-22% | Strong |
| Dividend Yield (%) | 2.09% | 1.5-2.5% | Average |
🔴 Problem: MRPL’s P/E of 30.5 is expensive compared to the industry (21.66).
1.3 Profitability Trends (Last 5 Years)
| Year | Net Profit (₹Cr.) | EPS (₹) | ROE (%) |
|---|---|---|---|
| 2020 | -₹1,250 Cr. | -19.14 | -49.58 |
| 2022 | ₹1,137 Cr. | 16.88 | 51.64 |
| 2024 | ₹1,136 Cr. | 20.52 | 31.08 |
📌 Key Takeaway: MRPL has recovered from losses but faces volatility due to oil price swings.
1.4 Quarterly Performance (2024)
| Quarter | Net Sales (₹Cr.) | Net Profit (₹Cr.) | EBITDA Margin (%) |
|---|---|---|---|
| Dec 2023 | 28,364 | 387.06 | 4.09 |
| Mar 2024 | 29,190 | 1,136.84 | 7.98 |
| Sep 2024 | 28,785 | -704.82 | -1.65 |
⚠️ Red Flag: Sep 2024 saw a loss due to negative EBITDA margins.
Section 2: Technical Analysis (March 2025)
2.1 Price & Volume Trends
| Indicator | Value | Implication |
|---|---|---|
| Current Price | ₹143.24 (▲35.4% YTD) | Strong uptrend |
| 52-Week Range | ₹98.92 – ₹259.90 | Mid-cycle |
| Delivered Qty (1M) | 2.22 Cr. (1.8x avg) | Institutional buying |
| RSI (14-day) | 73.28 (Overbought) | Pullback likely |
2.2 Key Technical Signals
| Indicator | Status | Action |
|---|---|---|
| Stochastic %K | 89.29 (Overbought) | Sell |
| Weekly SuperTrend | ₹149.64 (Resistance) | Sell Zone |
| Relative Strength | Improving vs. Nifty Energy | Neutral |
📉 Short-Term Outlook: Overbought signals suggest a correction towards ₹130-135.
Section 3: Annual Report & Growth Projections
3.1 5-Year Growth Trends
| Metric | 2020 | 2024 | CAGR |
|---|---|---|---|
| Net Sales | ₹20,832 Cr. | ₹29,190 Cr. | 8.8% |
| Net Profit | -₹1,250 Cr. | ₹1,136 Cr. | Recovery |
| EPS | -19.14 | 20.52 | Strong rebound |
3.2 Future Risks & Opportunities
✅ Opportunities:
- Government support in oil refining sector.
- Debt reduction (D/E improved from 2.91 to 0.94).
❌ Risks:
- Crude oil volatility impacts margins.
- Overvaluation (P/E 30.5 vs. Industry 21.66).
Section 4: Should You Buy MRPL Stock? (Investment Strategy)
4.1 For Traders (Short-Term)
- Entry Point: Wait for RSI to cool below 60 (~₹130-135).
- Exit Point: ₹149-150 (SuperTrend resistance).
4.2 For Investors (Long-Term)
- Buy on Dips: Accumulate below ₹120 if oil stabilizes.
- Hold Period: 2-3 years for refining cycle upside.
4.3 Final Verdict
| Aspect | Rating (1-5) | Remarks |
|---|---|---|
| Fundamentals | ⭐⭐⭐☆ (3.5/5) | Decent but cyclical |
| Technicals | ⭐⭐⭐☆ (3.5/5) | Overbought near-term |
| Valuation | ⭐⭐☆☆ (2.5/5) | Expensive P/E |
Conclusion: MRPL is a high-risk, high-reward bet—best suited for traders and patient investors.
FAQ
❓ Is MRPL a good long-term investment?
- Only if you can handle volatility. The refining sector is cyclical.
❓ What’s the target price for MRPL?
- Short-term: ₹150 (resistance).
- Long-term: ₹200+ if margins improve.
❓ Does MRPL pay dividends?
- Yes, 2.09% yield (₹2.99/share in 2024).
Final Word: MRPL is not for the faint-hearted. Trade carefully or accumulate on dips for long-term gains.
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