The recent decline was triggered by comments from company executives stating that MRPL, a state run oil refiner and fuel retailer, is not importing Russian crude due to Western sanctions and is exploring purchases of Venezuelan oil.
According to Devendra Kumar, MRPL’s head of finance, the company is considering Venezuelan crude purchases as it halts Russian oil imports to remain compliant with international sanctions. “We are in strict compliance with all sanctions in place, and currently no Russian crude is being imported,” Kumar stated during an analyst call.
MRPL operates a 500,000 barrel per day refinery in Karnataka and exports roughly 40% of its refined fuel output.
Prior to the recent three day dip, the stock had surged nearly 9% last week following strong Q3 FY26 results. The company reported a net profit of Rs 1,451 crore, nearly five times the Rs 309 crore recorded in the same quarter last year. Revenue rose to Rs 24,750 crore from Rs 21,904 crore year on year, while margins saw significant improvement, boosting investor confidence.
Valuation and Technical Overview
MRPL’s shares are currently trading at a price to earnings ratio of 11.22 and a price to book ratio of 1.88, reflecting relatively attractive valuations. On the technical front, the 14 day Relative Strength Index stands at 41.4, suggesting that the stock is neither overbought nor oversold.
In terms of moving averages, MRPL is trading below four of its eight short term simple moving averages, indicating some near term weakness. However, it continues to trade above its 150 day and 200 day long term simple moving averages, signalling a healthy long term trend.
Overall, MRPL’s stock rebound is supported by strong quarterly earnings and its proactive efforts to diversify crude sourcing, factors that appear to have restored investor confidence following earlier concerns over geopolitical supply disruptions.
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(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own and do not represent the views of The Economic Times.)
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