Mangalore Refinery Faces Stock Volatility Amid High Debt and Underperformance Challenges

Mangalore Refinery & Petrochemicals Ltd. has experienced significant fluctuations in its stock performance, particularly marked by a notable 60.99% decline from its recent highs. Over the past year, the stock has underperformed the broader market, with a return of -60.30%, contrasting sharply with the Sensex's gain of 4.44%.
In terms of daily performance, Mangalore Refinery saw a rise of 3.59%, while the Sensex dipped slightly by 0.04%. However, the stock's performance over the past month reflects a decline of 18.82%, indicating ongoing challenges. The company's market capitalization stands at Rs 19,734.00 crore, with a price-to-earnings ratio of 23.20, significantly higher than the industry average of 16.39.

Financial metrics reveal a high debt burden, with a debt-to-equity ratio averaging 2.85 times, and a return on capital employed (ROCE) of just 9.52%. Despite these challenges, Mangalore Refinery has shown long-term growth potential, with net sales increasing at an annual rate of 12.91%. However, the stock's technical indicators suggest a bearish trend, reflecting broader market pressures.