MMTC shares slump 27% in 3 days; panic sell-off may continue, say analysts

MMTC Ltd shares continued to dwindle on Friday, taking their sharp cuts to the third straight session. The stock cracked another 10 per cent today and settled at its lower price band of Rs 63.50. It has dived 27.08 per cent in three sessions. Technical analysts said the counter is looking 'bearish' on daily charts.

DRS Finvest founder Ravi Singh said MMTC share price may touch Rs 50 level in the coming trading days. "Delisting reports have triggered panic sell-off in the counter," Singh stated.

AR Ramachandran from Tips2trades said the stock looked bearish on daily charts, adding that it may drop till Rs 50 in the near term.

The counter was trading lower than the 5-day, 10-, 20- and 30-day simple moving averages (SMAs) but higher than the 50-day, 100-, 150-, 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 49.66. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 8.78 against a price-to-book (P/B) value of 8.37. The stock has a one-year beta of 1.46, indicating high volatility.

However, the scrip has given multibagger returns in the last six months and rallied 118.89 per cent. On BSE, around 67.32 lakh shares changed hands today. The figure was higher than the two-week average volume of 42.60 lakh shares. Turnover on the counter stood at Rs 43.20 crore, commanding a market capitalisation (m-cap) of Rs 9,525 crore. There were 4,13,675 sell orders today against buy order of nil shares.

MMTC is an international trading company and deals in minerals. At present, the government holds an 89.93 per cent stake in the PSU. MMTC is one of the country's biggest non-oil importers and the single largest exporter of minerals.

The firm is currently a member of the Multi Commodity Exchange (MCX). It is registered as a commodity derivative broker on MCX from December 2015.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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