MRPL stock soars over 17.5%, sets new record high after 16 years; here's why

Shares of Mangalore Refinery and Petrochemicals, a government-owned refinery company, continued their winning streak for the third consecutive trading session on Thursday, gaining 17.8% to hit a new record high of ₹158 apiece, surpassing their previous record of ₹149 apiece achieved in January 2008.

By 01:15 pm, a total of 33.8 million shares were traded on the NSE and BSE combined, significantly exceeding the one-week average trading volume of 2.1 million shares.

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In the calendar year 2023, the stock generated a multibagger return of 137.52%, marking its third consecutive year of positive performance. In both CY21 and CY22, it achieved gains of 21% and 31%, respectively. Notably, the stock concluded the last 10 months with positive returns, with April 2023 witnessing the highest monthly gain of 22.12%. In the current month so far, it is up by 17%.

Mangalore Refinery and Petrochemicals Limited (MRPL) is a Category 1 Schedule ‘A’ Miniratna Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. It is the first Indian refinery to be certified with AS9100D:2016 for the production, certification, and distribution of Aviation Turbine Fuel (ATF), according to the company's recent exchange filing. 

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Second Quarter Performance

For the September quarter (Q2FY24), the company reported a consolidated net profit of ₹1,059 crore, a strong turnaround from a net loss of ₹1,789 crore in the same period a year ago. The company achieved a profit of $ 17.11 for every barrel of crude oil processed into fuels like petrol and diesel in the second quarter of FY24. 

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In contrast, during the corresponding period last year, the company posted a negative gross refining margin of $ 4.46 per barrel, primarily due to considerable volatility in crude oil prices.

Furthermore, there was an improvement in the debt-to-equity ratio, which decreased from 2.24 in the second quarter of the previous fiscal year to 1.7 in Q2 FY24.

For the April–September period of FY24, the company reported a net profit of ₹2,072 crore. This signifies a notable improvement of 126% compared to the net profit of ₹918 crore recorded in the first half of FY23.

At 01:15 pm, the stock was trading with a gain of 17.22% at ₹157.25 apiece. 

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