MRPL Shares Tumble Over 12% In Five Sessions After Q1 Net Profit Nearly Halves

Shares of Mangalore Refinery and Petrochemicals Ltd. fell for the fifth consecutive session on Tuesday, losing more than 12%, after the company's first quarter net profit nearly halved year-on-year.

• Revenue down 6.52% at Rs 23,247 crore versus Rs 25,329 crore.

• Ebitda down 74.1% at Rs 603 crore versus Rs 2,329 crore.

• Ebitda margin contracted 660 bps to 2.59% versus 9.19%.

• Net profit down 94.22% at Rs 65.57 crore versus Rs 1,136 crore.

The company delivered a substantial miss in first quarter due to a weak refining performance, with gross refining margin and throughput coming in 32% and 7% below estimates, said Motilal Oswal Financial Services Ltd.

The brokerage is also concerned about the stock's valuation, which remains elevated, according to it. It has reiterated its 'sell' call for the stock and has a target price of Rs 170 per share.

"We are bullish on refining from a medium- to long-term perspective, given only 3.3 mb/d of net capacity additions globally in the 2023-30 period," Motilal Oswal said.

The scrip fell as much as 7.55% intraday, the lowest level since June 5, before paring loss to trade 3.7% lower at Rs 207.13 apiece, as of 10:06 a.m. This compares to a 0.19% decline in the NSE Nifty 50.

It has risen 56.31% year-to-date and 150.66% in the last 12 months. Total traded volume so far in the day stood at 0.59 times its 30-day average. The relative strength index was at 39.03.

Of the six analysts tracking the company, one maintained a 'buy' rating, one recommended a 'hold' and four suggested 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an downside of 10.7%.