Mehabe score: 4 G Factor: 4 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 4.
Description
Mangalore Refinery And Petrochemicals is engaged in the business of refining of crude oil.(Source : 201903 Annual Report Page No: 112) Site:MRPL Main Symbol:MRPL
Stock trades at 46.5, above its 50dma 44.68. It also trades above its 200dma 44.61. The stock remains bullish on techicals
The 52 week high is at 57.80 and the 52week low is at 33.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.20% over past five years.
– has a low return on equity of -15.09% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 4.7x. Reliance Industr trades at the industry’s max P/E of 28.73x. MRPL trades at a P/E of x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 8.0. MRPL has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 6.0%. The max 1- month return was given by I O C L: a return of 12.26 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 20419.0 cr compared to Rs 7893.0 cr for period ended Dec 2020, a rise of 158.7% .
vis-vis 50.0 for period ended Dec 2020 .
Operating Margins expanded 777.5 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 1717.0 cr for period ended Dec 2021 and operating profit margin at 8.4 % for same period.
The EPS for quarter ended Dec 2021 is Rs 3.36 compared to Rs -2.34 for previous quarter ended Sep 2021 and Rs -1.25 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 58548.0 cr for period ended TTM vis-vis sales of Rs 32058.0 cr for the period ended Mar 2021, a healthy growth of 45.2%. The 3 year sales cagr stood at -2.6%.
Operating margins expanded to 5.0% for period ended TTM vis-vis 2.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 222.0 cr for period ended TTM vis-vis sales of Rs -568.0 cr for the period ended Mar 2021, rising 355.9%.
Company reported a poor Net Profit CAGR of -13.2% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was -11.0% compared to -15.0% over the last 3 Years. – The stock has given a return of 30% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 20% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is 78% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.74% vis-vis 0.56% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 8.34% vis-vis 8.33% for Sep 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
-The company has delivered a poor sales growth of -4.20% over past five years.
– has a low return on equity of -15.09% for last 3 years.
– might be capitalizing the interest cost
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 44.68 and is trading at 46.5 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
