MMTC shares zoomed 20% to hit one-year high; what's next for this PSU stock?

Shares of state-run MMTC Ltd rose sharply on Wednesday to scale their 52-week high levels. The stock today soared 20 per cent to settle at Rs 102.60. At this price, it has gained 70.57 per cent on a year-to-date (YTD) basis.

Technical analysts largely suggested that the counter looked 'strong' on daily charts. With that being said, immediate support could be seen at Rs 95 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "MMTC has experienced a strong upward movement with high trading volumes. The stock is expected to continue its upward trend. In the short term, it has potential to reach Rs 114-120 levels. Support levels will be in the Rs 95-85 range."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also mentioned that the stock looked strong on daily charts. "It can hit an upside target of Rs 110 in the near term. Keep stop loss placed at Rs 95," Singh stated.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "Next visible upside targets will be between Rs 115 and 135 levels. There could be some consolidation in between with near-term support lying at Rs 95. After that, one can expect for another upward move to register new highs."

The stock saw heavy trading volume on BSE today as around 84.94 lakh shares changed hands. The figure was way more than the two-week average volume of 16.99 lakh shares. Turnover on the counter came at Rs 83.56 crore, commanding a market capitalisation (m-cap) of Rs 15,390 crore.

It traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 70.31. 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 225.63 against a price-to-book (P/B) value of 11.36. Earnings per share (EPS) stood at 0.45 with a return on equity of 5.04.

MMTC is an international trading company and deals in minerals. As of June 2024, the government held an 89.93 per cent stake in the PSU.