Query Trends : MRPL

Query: I got 200 shares of MRPL at Rs.126, may you please advice me about this share?Please help me out,hold or sell? and what is the short term target? Sunitha Govinth

Thebullishtrends: MRPL share price closed today at Rs.132. Mangalore Refinery & Petrochemicals located in Mangalore, India is a subsidiary of ONGC and was set up in 1988 with the initial processing capacity of 3.0 million ton per annum that was later expanded to the present capacity of 9.69 million ton per annum. It has a design capacity to process 9.69 million ton per annum and is the only refinery in India to have 2 Hydrocrackers producing premium diesel (high cetane).

It is also the only refinery in India to have 2 CCRs producing unleaded petrol of high octane. Prior to the acquisition by ONGC in March 2003, MRPL, was a joint venture oil refinery promoted by Hindustan Petroleum Corporation and IRIL & Associates (AV Birla Group). The refinery was conceived to maximise middle distillates with the capability to process light to heavy and sour to sweet crudes with 24 to 46 API gravity.

MRPL has got petrochemical FCCU and delayed coker unit as its approved projects and others including isomerization unit mixed xylene unit are under implementation. MRPL plans to initiate plant-scale experiments on spent caustic treatment with chlorine dioxide to treat phenols, conduct a study on ONGC-Hazira HCR samples, on producing Gasoline using ONGC Hazira naphtha and MRPL reformate, and analyse the feasibility of producing US Military grade ATF-JP5. The company also plans to augment refining capacity from the present rating of 9.69 tpa to 15 tpa.

MRPL's operating profit margins slightly declined when it compared to 1st Quarter, but other income added in first quarter opertating profit. Having sound fundamentals and belong to PSU subsidiary MRPL can perform well in the long run. Hold it.