Shares of Mangalore Refinery and Petrochemicals declined sharply on Tuesday, March 17, reversing the previous session’s strong gains amid profit booking and weak refining margins.
The stock was trading at Rs 193.00, down Rs 13.77 or 6.66% compared to the previous close of Rs 206.77 on the National Stock Exchange (NSE). The decline comes a day after the stock surged over 9% with exceptionally high volumes.
Profit booking after sharp rally
In the previous session, MRPL witnessed strong buying interest, with the stock hitting an intraday high of Rs 195.89 and recording heavy volumes of over 3.29 crore shares. Following this sharp up move, today’s fall appears largely driven by profit booking, as traders locked in gains after the rally.
Weak refining margins add pressure
The decline also coincides with weakness in the broader oil refining space. Singapore Gross Refining Margins (GRMs) have turned negative at around $9.4 per barrel, marking one of the lowest levels in at least a decade. Weak GRMs typically impact profitability for refining companies like MRPL, putting pressure on sentiment.
Sectoral factors in play
Oil marketing companies and refining stocks, including Reliance Industries, MRPL, and Chennai Petroleum, remain in focus due to margin pressures. At the same time, Asia spot gas prices have surged to around $19.3/mmBtu, up nearly 90% in the last one month, indicating volatility across the energy complex.
Financial performance remains strong
Despite the recent volatility, MRPL reported a strong Q3 performance, with net profit rising to Rs 1,451 crore from Rs 627 crore in the previous quarter. Revenue stood at Rs 24,712 crore, up 9% sequentially, while EBITDA increased to Rs 2,784 crore, with margins expanding to 11.3%.
The stock’s movement today reflects a combination of profit booking and macro headwinds impacting the refining sector.
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