Mangalore Refinery and Petrochemicals share price plunges 7% despite strong Q2 results | What should investors do?
Mangalore Refinery and Petrochemicals share price crashed over 7.42% in Thursday's trading session despite the company reported strong financial results for the September quarter FY27.
Mangalore Refinery and Petrochemicals shares opened at ₹189.60 per share on NSE today, as compared to previous close of ₹185.26 on Wednesday and touched an intraday low of ₹171.20 on 15 October.
Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of Oil and Natural Gas Corporation (ONGC), posted a nearly threefold year-on-year jump in standalone net profit to ₹1,881 crore in the second quarter of FY27, compared with ₹639 crore in the corresponding quarter last year.
Revenue from operations increased 37.1% year-on-year to ₹35,590 crore in Q2 FY27 from ₹25,953 crore in Q2 FY26. Profit before tax (PBT) also rose significantly to ₹2,519 crore from ₹975 crore in the year-ago period.
The company's earnings before interest, depreciation, tax and amortisation (EBITDA) more than doubled to ₹3,210 crore in the September quarter, against ₹1,565 crore in the corresponding period of the previous fiscal year.
For the first half of FY27, MRPL's standalone net profit surged to ₹2,796 crore from ₹367 crore in the year-ago period. Revenue from operations climbed to ₹77,199 crore from ₹46,942 crore, while profit before tax increased to ₹3,734 crore from ₹572 crore.
Meanwhile, the company's board approved a first interim dividend of ₹3 per equity share, representing 30% of the face value of each share.
MRPL received its first-ever international credit rating from Fitch Ratings, securing a ‘BBB-’ rating with a stable outlook, in line with India’s sovereign rating.
During the quarter, the company finalised agreements for hiring storage tanks for aviation turbine fuel (ATF) in Goa and motor spirit and high-speed diesel (MS/HSD) in Kochi. It also began product loading operations at the Aegis Terminal in Mangaluru, the Hindupur depot in Andhra Pradesh, and the Ennore terminal in Tamil Nadu.
Brokerage firm PL Capital maintained ‘hold’ rating on the Mangalore Refinery and Petrochemicals stock, with a revised target price of ₹180 per share.
“Following the strong 1HFY27 performance, we raise our FY27E GRM assumption to USD11.3/bbl vs USD7.8/bbl. However, we expect GRMs to normalize to USD7.4/7.5/bbl in FY28E/FY29E as geopolitical disruptions ease and refining cracks revert towards normalized levels. We maintain “HOLD” rating while revising our TP to INR180 (earlier: INR165), based on 6.0x Sep’28E EV/EBITDA. We continue to assign an option value of INR23/share to the chemicals project, which remains several years away from commercialization,” the brokerage firm said.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, believes that Traders can consider buying MRPL in the ₹165–168 range, keeping a stop-loss at ₹154 to manage downside risk.
“The stock has potential to move towards the target prices of ₹178 and ₹188. Investors should maintain strict stop-loss discipline and monitor price action before taking a position,” Ojha said.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsMangalore Refinery and Petrochemicals share price plunges 7% despite strong Q2 results | What should investors do?
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