Miniratna PSU Stock To Buy: Rs 2 Dividend Declared; Current Price Looks Lucrative Entry Point?

Under the Ministry of Petroleum & Natural Gas, Mangalore Refinery and Petrochemicals Limited (MRPL) is a Category 1 schedule "A" Miniratna, Central Public Sector Enterprise (CPSE). Nearly all petroleum products, including pet coke and polypropylene, can be produced at MRPL's refinery, including naphtha, LPG, motor spirit, high-speed diesel, kerosene, aviation turbine fuel, sulphur, xylene and bitumen.

MRPL Upcoming Dividend

"The Board of Directors at its meeting held on Friday, 03 May, 2024, had recommended a final dividend of Rs 2/- per equity share of Rs 10/- each fully paid-up i.e., @ 20% for the Financial Year 2023-24, subject to approval by the Members at the Annual General Meeting ("AGM") scheduled to be held on Thursday, 22 August, 2024. Pursuant to Regulation 42 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, 09 August, 2024, as the Record Date for determining Members entitled to final dividend for the Financial Year ended March 31, 2024. The final dividend as recommended by the Board if approved at the AGM, payment of such dividend, subject to deduction of tax at source, will be made within 30 days of approval," said Mangalore Refinery and Petrochemicals in a stock exchange filing.

MRPL Results

The company declared a net revenue from operations of Rs 27,289 Crore in the quarter ended 30th June 2024 compared to Rs 24,825 Cr in the year-ago quarter. It reported a net profit of Rs 66 Crore in Q1FY25 compared to Rs 1,013 Crore in Q1FY24. The debt-equity ratio improved from 0.94 as of March 31, 2024 to 0.89 as of June 30, 2024. MRPL reported ever highest crude processed in any month recorded in the month of May-2024 i.e. 1,593.2 TMT compared to the previous highest of 1,557.3 TMT in Jan-2016. June month crude processed - ever highest 1,474.34 TMT compared to the previous highest of 1,463.3 TMT in June-2015.

MRPL Share Price Target

"Petroleum refinery company Mangalore Refinery and Petrochemicals Limited's current price looks lucrative as an entry point for those interested in this stock. Traders and investors may enter the buying range of Rs. 210 to 222 and consider averaging the price by exploring the Rs. 195-200 range for a target price of Rs. 235-275. They may consider holding this stock for a period of 3-10 weeks and must follow a stop loss at Rs. 185 to limit exposure," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

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.