MRPL shares jump 20% to hit one-year high; time to book profit or more upside possible?

Shares of Mangalore Refinery and Petrochemicals Ltd (MRPL) rose sharply in Thursday's trade to scale their one-year high level. The stock zoomed 20 per cent to hit a 52-week high of Rs 245 against its previous close of Rs 204.20. The multibagger stock has rallied nearly 355 per cent in a year and 85 per cent on a year-to-date (YTD) basis.

On technical setup, support on the counter could be seen at Rs 220. And, a decisive breach above Rs 245 is required for further upside.

"Support will be at Rs 220 and resistance at Rs 240. A decisive close above Rs 245 level may trigger a further upside till Rs 255. Expected trading range will be between Rs 200 and Rs 270 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Mangalore Refinery stock price looks bullish but also overbought on daily charts with next resistance at Rs 245. Investors should book profits at current levels as a daily close below support of Rs 220 could lead to Rs 179 in the near term," said AR Ramachandran from Tips2trades.

On BSE, around 38.81 lakh shares were last seen changing hands today. The figure was higher than the two-week average volume of 8.04 lakh shares. Turnover on the counter came at Rs 90.33 crore, commanding a market capitalisation (m-cap) of Rs 42,938.67 crore.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 80.39. 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 8.19 against a price-to-book (P/B) value of 3.01.

The scrip has a one-year beta of 0.7, indicating low volatility.

As on December 2023, promoters held 88.58 per cent stake in the company.

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

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