High Promoter Holding Miniratna Stock Declares Interim Dividend For FY24: Buy?

Under the authority of the Ministry of Petroleum & Natural Gas, Mangalore Refinery and Petrochemicals Limited (MRPL) is a Central Public Sector Enterprise (CPSE) classified as a Category 1 schedule 'A' Miniratna. Following the company's announcement of Q3 results for FY24 and an interim dividend for eligible shareholders, the stock has come into focus of the market watchers.

MRPL Dividend

"Pursuant to Regulation 30 of SEBI (LODR), it is hereby informed that the Board of Directors has declared an Interim dividend at the rate Rs 1/- on fully paid up equity shares of Rs 10/- each i.e. @ 10% for the Financial Year 2023-24. It may also be noted that, pursuant to Regulation 42 of SEBI (LODR), the Board has fixed Friday, February 02, 2024 as the "Record Date" for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend. The Interim Dividend would be paid to eligible shareholders on or before February 21, 2024," said MRPL in a regulatory filing.

"Board has approved interim dividend of 10%, i.e. Rs 1 on each equity share of Rs 10. The total payout on this account will be Rs 175.26 Crore. The Record date for distribution of dividend has been fixed for February 2, 2024 which has been intimated to the stock exchanges," said MRPL in a stock exchange filing.

MRPL Financials

In an exchange filing, Mangalore Refinery and Petrochemicals Ltd. (MRPL) declared a consolidated net profit of Rs 387 Cr for the quarter that ended on December 31, 2023, up from a net loss of Rs 188 Cr in the same period the previous year. In the third quarter of FY24, its consolidated revenue from operations was Rs 28,383.41 crore, compared to Rs 30,966.16 crore in Q3FY23. In comparison to the Q3 FY 2022-2023 GRM of 3.88 $/bbl, the company recorded a GRM of 5.00 $/bbl in Q3FY24. From 2.28 on December 31, 2022, to 1.14 on December 31, 2023, was an improvement in its debt-to-equity ratio for the company.

MRPL Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said MRPL is currently trading at Rs 174. The stock exhibits a robust demand zone within the 160 to 155 range, serving as a crucial support level. The establishment of new higher highs and higher lows suggests a potential upward movement, with projected targets at Rs 260. Notably, substantial support is evident around Rs 156.

Additionally, MRPL is trading above key Exponential Moving Averages (EMAs), encompassing the 20-day, 50-day, 100-day, and 200-day EMAs, indicating a strong bullish momentum. The Relative Strength Index (RSI) stands at 75, affirming an upward trajectory and confirming increased buying momentum.

To effectively manage risk, it is advisable to set a stop-loss (SL) at Rs 155, safeguarding investments against unexpected market reversals. A prudent strategy involves considering buying opportunities during market dips at levels around Rs 164.

In summary, based on technical analysis and prevailing market conditions, MRPL appears to offer a promising buying opportunity for those targeting price objectives of Rs 200 and Rs 260, contingent upon the implementation of prudent risk management measures.

MRPL Shareholding

During Q3FY24, the company recorded promoters' shareholding of 88.58%, FIIs stake of 2.55%, DIIs stake of 1.57%, and public stake of 7.30%. The promoters' stake in MRPL at the current level is much higher than its peers such as Reliance Industries, IOCL, BPCL, HPCL, CPCL, and Gandhar Oil Refinery (India).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.