MMTC shares climb 23% in 2 days; is PSU stock headed for a pullback?

Shares of state-run MMTC Ltd continued their strong upward move for the second consecutive session on Thursday. The stock surged 13.55 per cent to hit a day high of Rs 78.80. At this price, it has gained 23.20 per cent in just two trading days.

The counter saw heavy volume along with the share price action as around 1.07 crore shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 10.19 lakh shares. Turnover on the counter came at Rs 82.06 crore, commanding a market capitalisation (m-cap) of Rs 11,754 crore.

Technically, support on the counter could be seen in the Rs 75-70 range and resistance may be found at Rs 80 level. An analyst believes a potential trend reversal could be seen in MMTC shares as they've turned overbought on charts.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "MMTC has experienced a sharp uptick, supported by substantial trading volumes. A trend reversal is evident, with the support level now emerging in the Rs 70 sub-range. Conversely, resistance is anticipated within the Rs 82-85 zone from a short-term perspective."

Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), suggested that immediate support will be at Rs 75 while resistance will be at Rs 80. "A decisive move above Rs 80 level may trigger a further upside towards Rs 85. The expected trading range will be between Rs 75 and Rs 85 for the near term," he added.

Sebi-registered independent research analyst AR Ramachandran advised MMTC is bullish but overbought on daily charts with the next resistance at Rs 81. "Investors should be booking profits as a daily close below support of Rs 70 could lead to a downward target of Rs 58 in the near term," he also said.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 77.65. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-earnings (P/E) ratio of 111.96 against a price-to-book (P/B) value of 8.17. Earnings per share (EPS) stood at 0.70 with a return on equity (RoE) of 7.32. According to Trendlyne data, MMTC has a one-year beta of 1.3, indicating high volatility.

MMTC is an international trading company that largely deals in minerals. As of March 2025, the government held an 89.93 per cent stake in the PSU.