Mangalore Refinery & Petrochemicals Ltd Gains 4.84%: 7 Key Factors Driving the Week’s Momentum

2 February 2026: Intraday Surge and Technical Momentum Shift

MRPL began the week with a notable intraday surge, touching a high of Rs.176.95, representing a 7.9% increase from the prior close. The stock closed at Rs.177.40, up 0.51% on the day, significantly outperforming the Sensex which declined 1.03% to 35,814.09. This rally marked a reversal after two days of declines and was supported by the stock trading above all key moving averages, signalling strong technical resilience.

However, the day also saw mixed technical signals as the stock experienced a sharp intraday decline to Rs.163.30 before recovering, reflecting volatility amid profit-taking and sector sensitivity to crude price fluctuations. The Moving Average Convergence Divergence (MACD) remained bullish on weekly and monthly charts, but the Know Sure Thing (KST) indicator showed mild bearishness, indicating a nuanced momentum landscape.

3 February 2026: Bullish Technical Momentum Confirmed

The bullish momentum solidified on 3 February with MRPL gaining 1.01% intraday to close at Rs.179.20, an 8.63% jump from the previous close of Rs.163.30. The stock traded near its 52-week high of Rs.185.00, outperforming the Sensex’s 2.63% gain to 36,755.96. Technical indicators aligned positively, with MACD and Bollinger Bands signalling strong upward momentum, while the Relative Strength Index (RSI) remained neutral, suggesting room for further gains.

Despite a mildly bearish KST and neutral On-Balance Volume (OBV), the overall trend shifted from mildly bullish to bullish, supported by the upgraded mojo score of 77.0 and a Buy grade. This technical shift reflected renewed investor confidence amid improving sector fundamentals.

4 February 2026: New 52-Week High and Exceptional Volume Surge

MRPL reached a new 52-week high of Rs.189.5 on 4 February, closing with a 4.94% gain and outperforming the Oil sector’s 2.01% advance. The stock’s intraday low was Rs.175.4, reflecting some volatility, but the overall trend remained strongly bullish. The three-day cumulative gain reached 15.86%, underscoring sustained buying interest.

Trading volume surged to 1.54 crore shares with a traded value of approximately Rs.286.93 crores, positioning MRPL among the most actively traded stocks. The weighted average price indicated accumulation near the day’s low, suggesting institutional buying. The stock remained above all key moving averages, reinforcing the bullish technical setup.

Fundamentally, MRPL’s operating profit grew annually by 25.12%, net profit surged 131.72%, and the company maintained a strong operating profit to interest ratio of 12.72 times. Cash reserves stood at Rs.874.25 crores, with a conservative debt-to-equity ratio of 0.81 times. These metrics support the stock’s robust price performance and positive market sentiment.

5 February 2026: Minor Price Correction Amid Lower Volume

On 5 February, MRPL experienced a slight price dip of 0.25%, closing at Rs.182.55 on lower volume of 8.05 lakh shares. The Sensex also declined 0.53% to 36,695.11. Delivery volumes fell by 25.4% compared to the five-day average, indicating some short-term profit booking or reduced overnight holding. Despite this, the stock remained above key moving averages, maintaining its technical strength.

6 February 2026: Volume Surge and Positive Momentum Continue

MRPL closed the week on a positive note, gaining 1.37% to Rs.185.05, outperforming the Sensex’s marginal 0.10% rise. The stock recorded a traded volume of 68.66 lakh shares with a traded value of Rs.127.52 crores, ranking among the top volume gainers. The intraday high of Rs.188.35 placed the stock just 3.73% below its 52-week peak.

Despite a 25.4% decline in delivery volumes, the overall volume surge and price appreciation indicate strong accumulation during intraday sessions. The mojo score remained elevated at 74.0 with a Buy grade, reflecting sustained investor confidence. MRPL’s market capitalisation stood at Rs.31,994 crores, categorising it as a small-cap stock with solid liquidity and trading viability.

Valuation Shifts Signal Changing Price Attractiveness

Alongside strong price momentum, MRPL’s valuation profile shifted from attractive to fair as of late January 2026. The price-to-earnings ratio stands at 14.69, higher than some oil sector peers, while the price-to-book value ratio is 2.40, indicating a premium valuation. The enterprise value to EBITDA ratio of 7.51 remains reasonable but elevated relative to competitors such as CPCL and Jindal Drilling.

Despite this, MRPL’s PEG ratio is exceptionally low at 0.09, signalling strong earnings growth expectations relative to price. Operational returns are moderate, with a return on capital employed of 10.42% and return on equity of 7.78%. The stock’s 1-year return of 43.57% significantly outpaces the Sensex’s 6.44%, reflecting robust growth despite valuation moderation.

The stock’s price stability near its 52-week high and solid fundamentals support a balanced risk-reward profile. Investors should weigh the fair valuation against growth prospects and sector volatility, monitoring earnings updates and peer comparisons to assess ongoing attractiveness.

Weekly Price Performance: MRPL vs Sensex

Key Takeaways

Positive Signals: MRPL outperformed the Sensex by 3.33% over the week, hitting a new 52-week high of Rs.189.5 and registering strong volume surges indicative of institutional accumulation. The mojo score upgrade to Buy and sustained trading above key moving averages reinforce the bullish technical outlook. Robust financial metrics, including a 131.72% net profit growth and strong operating profit to interest coverage, underpin the stock’s fundamental strength.

Cautionary Notes: Valuation metrics have shifted from attractive to fair, with elevated P/E and P/BV ratios relative to some peers. Delivery volumes declined on key days, suggesting some short-term profit booking or speculative trading. Mixed technical indicators such as the mildly bearish KST and neutral OBV warrant close monitoring for confirmation of sustained momentum. Sector volatility and global crude price fluctuations remain external risks.

Conclusion

MRPL’s performance in the week ending 6 February 2026 reflects a strong rebound and sustained bullish momentum, supported by technical upgrades, volume surges, and solid financial results. The stock’s outperformance relative to the Sensex and sector peers highlights its resilience and leadership within the oil refining space. While valuation shifts suggest a more cautious stance, the company’s growth trajectory and upgraded mojo rating provide a positive backdrop. Investors should continue to monitor technical signals, delivery volumes, and sector developments to gauge the sustainability of this rally amid evolving market conditions.

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