Mangalore Refinery and Petrochemicals Limited (MRPL) has been a widely followed stock in the oil and gas sector, but is it really a goldmine opportunity or a hidden risk? Let’s dive into its fundamentals to uncover the truth!
📊 MRPL’s Key Fundamentals – What You Must Know!
✅ Valuation – Is It Cheap or Expensive?
- P/E Ratio (24.1): Moderately priced, neither too expensive nor a bargain.
- P/B Ratio (1.70): Fairly valued, indicating stability.
- EV/EBITDA (9.12): A reasonable number, suggesting the stock isn’t overvalued.
🚀 Profitability – Strong or Struggling?
- ROCE (25.8%) & ROE (31.9%) – Excellent returns, showing strong capital efficiency.
- ROA (10.5%) – Decent return on assets, meaning good asset utilization.
- Net Profit Margin (4.09%) – Thin margins, which may limit profitability growth.
⚠ Big Red Flags – Should You Be Worried?
- Profit Growth (-81.0%) – Massive decline, raising concerns about business sustainability.
- Quarterly Profit Variation (-21.1%) – Inconsistent earnings, making it volatile.
- Debt-to-Equity (1.10) – Slightly high debt, which increases financial risk.
- Liquidity Issues:
- Current Ratio (0.92) & Quick Ratio (0.41) – Weak short-term financial health.
- Interest Coverage (2.27) – Lower than ideal, meaning debt servicing could be a challenge.
🏆 Strong Points That Make MRPL Attractive
- High Promoter Holding (88.6%) – Shows confidence, but limits public liquidity.
- Decent Dividend Yield (2.64%) – Provides stable returns for long-term investors.
- 5-Year EPS Growth (60%) – Shows historical strength, but recent decline is concerning.
🔍 Final Verdict – Buy, Hold, or Avoid?
MRPL has strong fundamentals but serious short-term concerns, especially in profit growth and liquidity. Long-term investors may find value, but short-term traders should be cautious due to volatility.
🔥 Is MRPL a Multibagger in the Making? Drop Your Thoughts in the Comments! 👇
