ONGC subsidiary stock slashed to 50% from lifetime high would you buy or hold
An ONGC subsidiary’s stock has fallen by over 50% from its lifetime high of ₹289.25 which it reached on February 19, 2024. As of Q2FY25, the company reported a total sales revenue of ₹24,967 crore but recorded a net loss of ₹778 crore. This is a significant decline compared to the same period last year (Q2FY24), when the company generated ₹19,290 crore in sales and reported a profit of ₹1,045 crore. The sharp drop in profitability underscores the substantial challenges the company faced this quarter.
In Q2FY25, the company’s operating costs soared to ₹25,784 crore, surpassing its total sales of ₹24,967 crore. This marks a 48% increase from Q2FY24, when operating expenses were ₹17,387 crore. The sharp rise in operational costs has severely impacted the company’s profitability, pushing its stock down to a recent low of ₹141.37, the 52-week low of ₹107.35. The stock is currently trading at ₹168.02
Shareholding Pattern
Sep 2024 June 2024
Promoter holding 88.58% Promoter holding 88.58%
FIIs holding 1.69% FIIs holding 2.26%
Public Holding 8.23 % Public Holding 7.64 %
DII holding 1.48 % DII holding 1.5 %
Other Holding 0.02% Other Holding 0.02%
Balance Sheet
The company’s recent quarter-over-quarter (QoQ) profit details, a concerning trend emerges: profits are in continuous decline despite steady growth in sales figures. This decline is further compounded by rising operating costs, which are eroding the company’s profit margins. Additionally, an increase in liabilities is putting additional strain on the reserves and surplus, gradually depleting these critical financial buffers. The combined impact of declining profitability, rising expenses, and growing liabilities signals mounting financial pressures, which could affect the company’s long-term stability and operational flexibility if not addressed.
MRPL Trend On NSE
MRPL’s stock trading above the shorter-term moving averages 5-day, 20-day) but remains below the longer-term ones (50-day, 100-day, and 200-day), it typically signals a potential short-term bullishness within a broader downward trend. This divergence often suggests the stock might be experiencing a temporary bounce, but the sustained resistance at the longer-term averages indicates that downward pressure is still strong.
Such patterns often attract traders looking to capitalize on short-term gains, but it might deter long-term investors until there’s a confirmed reversal above those longer moving averages. For further clarity, you could look into additional indicators like the RSI and MACD to confirm if the current short-term momentum has enough strength to break through these longer-term resistance levels.
About Company
Mangalore Refinery and Petrochemicals Limited (MRPL) is a Category 1 Miniratna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. MRPL’s Refinery is capable of producing almost a full range of petroleum products like Naphtha, LPG, Motor Spirit, High-Speed Diesel, Kerosene, Aviation Turbine Fuel, Sulphur, Xylene, Bitumen along with Pet Coke and Polypropylene. MRPL operates an Aromatic Complex, a petrochemical unit capable of producing 0.905 MMTPA of Para Xylene and 0.273 MMTPA of Benzene. This Aromatic Complex is situated in the Mangalore Special Economic Zone (MSEZ) and is fully integrated with MRPL.
Before acquisition by ONGC in March 2003, MRPL, was a joint venture Oil Refinery promoted by M/s Hindustan Petroleum Corporation Limited (HPCL), a public sector company and M/s Indian Rayon and industries limited(IRIL) (AV Birla Group). MRPL was set up in 1988 with the initial processing capacity of 3.69 MMTPA that was later expanded to the present capacity of 15.0 MMTPA.
Company’s Business
MRPL becomes India’s first Refinery to get AEROSPACE STANDARD
Mangalore Refinery and Petrochemicals Ltd. (MRPL) being certified with AS9100:D, standard prepared by International Aerospace Quality Group (IAQG) to assure customer satisfaction in Aviation, Space and Defense Organizations, under the scope of “Production, Storage, Testing and Distribution of Aviation Turbine Fuel” .This achievement is even more remarkable because we are the first Refinery in India to attain this prestigious certification.
The aerospace industry demands the utmost precision, reliability, and safety in its supply chain. As a certified organization, we are now well-positioned to serve as a trusted partner to aerospace companies within India and globally
MRPL has touched a significant milestone in its retail footprint expansion aspirations by commissioning its 100th HIQ Retail Outlet which is incidentally named Century Fuel Services at Yeliyur, Sira in Tumkur District of Karnataka.
Hundred Plants were planted in the Retail Outlet to commemorate the event. HiQ has been a favored Fuel station for customers across
Karnataka and Northern Kerala
October 28, 2024 – Mangalore: Mangalore Refinery & Petrochemicals Ltd. (MRPL) hosted the HiQ Retail Dealers Meet at MERC, Mangalore, as part of its Vigilance Awareness Week celebrations. This initiative aimed to engage retail partners and reinforce vigilance and transparency within MRPL’s business ecosystem, providing a valuable platform for insights, discussions, and strengthening dealer relationships.
Stock Profile on Daily Chart
Stock, beginning around mid-July and extending through the end of October 2024. This consistent decline could indicate weak market sentiment or a broader underlying weakness, while the RSI is at 46 seems low in strength , RSI trading below 50 shows the weakness on chart.
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