Mangalore Refinery and Petrochemicals Limited

Energy — Oil & Gas Refining & Marketing · NSE

₹172.95−₹1.84 (−1.05%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by moderate debt load.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Mangalore Refinery and Petrochemicals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mangalore Refinery and Petrochemicals Limited engages in refining of crude oil in India and internationally.

IndustryOil & Gas Refining & Marketing

SectorEnergy

Employees2,450

Annual revenue₹88,627 Cr

How does it make money?

Turns over ₹88,627 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 2,450 employees supports ₹36.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹36.17 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.4%

What is the outlook?

2 analysts covering the stock expect revenue to shrink about 15.8% and earnings to grow about 1.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth-15.8%

Est. earnings growth+1.9%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -19% while net margin moved -11% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-19%

Margin effect-11%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.7% a year
✗ Profit has declined at 10.2% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

6.9x

3Y Median

14.4x

40 monthly readings · mean 156.8x · range 5.2x–614.5x

Sector Median

6.9x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 14.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 6.9x.

vs. its own history

Cheap

14.4x median over 40 months · -52%

vs. sector peers

Fair

6.9x median of 4 peers · -0%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 26.9% to 13.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.1% to 19.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 36% against revenue up -19% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 113% against revenue up -19% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 28% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 52% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 36% against revenue up -19%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 26.9% to 13.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✓ ₹1,119 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 16%✓ 19.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹30,311 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

6.9x

Cheap

Cheap against the generic band

P/B Ratio

2.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹25.19

Profitable

Profitable on a per-share basis

ROE

13.6%

Moderate

Moderate capital efficiency

ROCE

19.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.08x

Moderate

Moderate leverage

Revenue Growth (YoY)

120.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3324.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.47%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1,119 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

4.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

2.4%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.14

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

171.3 / 172.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

55.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1.09 L Cr	₹90,373 Cr	₹94,646 Cr	₹88,627 Cr	-6.7%
EBITDA	₹6,587 Cr	₹8,005 Cr	₹2,433 Cr	₹6,466 Cr	-0.6%
EBITDA Margin	6.0%	8.9%	2.6%	7.3%	—
PAT (Net Profit)	₹2,655 Cr	₹3,597 Cr	₹56 Cr	₹1,925 Cr	-10.2%
EPS	₹15.15	₹20.52	₹0.32	₹10.98	-10.2%
ROE	26.9%	27.1%	0.4%	13.6%	—
ROCE	23.1%	28.6%	4.9%	19.0%	—
Total Debt	₹16,939 Cr	₹12,687 Cr	₹13,143 Cr	₹15,341 Cr	-3.2%
Free Cash Flow	₹5,662 Cr	₹5,495 Cr	₹888 Cr	₹1,119 Cr	-41.8%

🔴 Revenue has shrunk at 6.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.6% a year).

🟢 EBITDA Margin has risen from 6.0% to 7.3% over 3 years (+1.3 pts).

🔴 PAT (Net Profit) has shrunk at 10.2% a year over 3 years.

🔴 EPS has shrunk at 10.2% a year over 3 years.

🔴 ROE has fallen from 26.9% to 13.6% over 3 years (-13.4 pts).

🔴 ROCE has fallen from 23.1% to 19.0% over 3 years (-4.0 pts).

🟢 Total Debt has shrunk at 3.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 41.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹44,481 Cr

Total Liabilities

₹30,284 Cr

Cash & Equivalents

₹564 Cr

Operating Cash Flow

₹2,531 Cr

Capex

-₹1,412 Cr

Shareholding (proxy)

Institutional Holding

1.8%

Insider Holding

90.0%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

21 Oct 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹197.5

+14.2% vs CMP

Target Range

₹180 – ₹215

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

2 positive3 mixed1 general

Dividend record date: Last chance to buy today to qualify, Elecon, ICICI Prudential AMC, MRPL - Who pays max amount?

Livemint, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

MRPL shares fall more than 7% despite strong Q2 results - Check dividend, record date

CNBC TV18, 15 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Mangalore Refinery and Petrochemicals Limited (NSE: MRPL) Shares Fall Despite 194% Q2 Profit Growth

Kalkine India, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

MRPL Share Price Falls 3.13%: Price Action and Valuation

Univest, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

What Mangalore Refy Doubters Overlooked

Simply Wall Street, 14 Oct

MRPL Q2 net profit nearly triples to Rs 1,881 crore even as throughput dips

PSU Watch, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑