MRPL Surges: Short-Term Gains Amid Market Recovery & Long-Term Growth Prospects
Business and Industry Overview:
Mangalore Refinery and Petrochemicals Limited (MRPL) is a major oil refinery in India and is part of Oil and Natural Gas Corporation (ONGC), which is owned by the Government of India. MRPL was established in 1988 and is located in Katipalla, a suburb north of Mangalore in Karnataka. To build the refinery, five villages—Bala, Kalavar, Kuthetoor, Katipalla, and Adyapadi—had to be relocated. The refinery at MRPL is known for its flexibility. It can process crude oil from different sources with varying qualities. It has a large capacity to process 15 million metric tonnes of crude oil each year. This makes it one of the larger refineries in India. MRPL is unique because it has two hydrocrackers that produce high-quality diesel, which is known as high cetane diesel. This is important for making cleaner, more efficient fuel. Additionally, the refinery has a polypropylene unit that can produce 0.44 million metric tonnes of polypropylene each year, which is used in the production of plastics. MRPL is one of only two refineries in India that have two Continuous Catalytic Reformers (CCRs). These units produce high-octane unleaded petrol, which is used in cars and other vehicles. The refinery currently processes around 14.65 million metric tonnes of crude oil every year, slightly less than its maximum capacity of 15 million metric tonnes. MRPL was initially a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the A.V. Birla Group to build a refinery that would help meet India’s growing demand for petroleum products. The refinery started with a small capacity of 3 million metric tonnes per year. Over the years, it has grown and expanded its processing capacity.
Today, MRPL continues to play a key role in India’s oil refining and petrochemical industries. The company’s operations are not just limited to refining crude oil; it also focuses on producing petrochemicals and meeting the country’s growing demand for energy products. It remains a critical part of the country’s energy security and plays a vital role in the refining sector.
India’s oil and gas industry is very important for the country. India uses a lot of oil for cars, factories, and electricity. In the future, India will need even more oil. By 2045, the country’s demand for oil is expected to double. Diesel will be used a lot, making up most of the oil used in the country. India is also using more natural gas. This is because natural gas is cleaner than other types of fuel. It is being used more in power plants and factories. The country will need more gas in the future. India does not have enough oil, so it buys oil from other countries. In 2024, India’s oil imports increased. To keep up with the demand, India is increasing its ability to refine oil. The country plans to add more refining capacity to make more products like diesel and gasoline. The government is also making sure that India has enough oil reserves for emergencies. They are building more storage for oil. This will help when prices go up or if there are problems with the oil supply. To help the industry grow, the government is making it easier for foreign companies to invest in India’s oil and gas sector. The government has also set rules to support clean fuels, like ethanol and biogas. In short, India’s oil and gas industry is growing because the country needs more energy. The government is helping by making policies to support the industry and encouraging investment. This will help India power its cars, factories, and homes in the future.
Mangalore Refinery and Petrochemicals Limited (MRPL) is a big company in India’s oil industry. It is owned by ONGC, one of India’s largest and most trusted oil companies. Being owned by ONGC gives MRPL financial strength and helps it gain trust in the market. MRPL has a special advantage because it can process different types of crude oil. This means the company can adjust to changes in the market. It is the only refinery in India with two hydrocrackers. These machines help make high-quality diesel, which is important for transport and industries. MRPL is also one of the only two refineries in India that have two machines called Continuous Catalytic Reformers (CCRs). These machines help make high-octane petrol, which is needed for cars and other vehicles. MRPL can process 15 million metric tonnes of crude oil every year. This is a huge amount and helps meet the country’s growing demand for petroleum products. MRPL also makes polypropylene, which is a material used to make many products like plastic, packaging, and clothes. This adds more value to MRPL’s business. The link with ONGC is very important for MRPL. ONGC is a huge and trusted company. This connection helps MRPL with money, technology, and experience. ONGC also gives MRPL access to many customers in India and abroad. Since ONGC took control of MRPL, the company has grown. MRPL is focused on growing its refining capacity to meet future demand. It is also working on better technology to be more eco-friendly and reduce pollution.
In short, MRPL is a strong company because it can process many types of crude oil, produce high-quality products, and has the support of ONGC. This makes MRPL a key player in India’s oil and gas industry.
Latest Stock News:
The stock price of Mangalore Refinery and Petrochemicals Limited (MRPL) has been moving up after a period of small declines and sideways movement. On March 22, 2025, the stock was priced at ₹117.88 on the National Stock Exchange (NSE), showing a positive change. This rise in stock price can be seen as a breakout from a narrow trading range, indicating that the stock is now in an upward trend. The Relative Strength Index (RSI) on both intraday and daily charts is showing positive signals, which means the stock may continue to rise. Also, the candlestick patterns on these charts suggest that the stock is likely to go higher. MRPL’s Gross Refining Margin (GRM) improved to $10.36 per barrel for the full year, up from $9.88 per barrel the previous year, showing good performance in refining. The company also reported a profit after tax (PAT) of ₹3,596 crore for FY2023- 24, which is 36.32% higher than the previous year. Because of these good results and the positive chart patterns, HDFC Securities has recommended buying MRPL shares as a short-term investment, suggesting that now is a good time to invest in the stock.
Potentials:
MRPL has big plans for its future. Right now, it is focusing on changing the way it works. Instead of selling fuel to other countries, it wants to sell more fuel directly to people in southern India. MRPL plans to grow its network of petrol stations from just 71 to 1,800 by 2027. This will help the company earn steady money because it will be selling directly to customers. Apart from selling fuel, MRPL also wants to grow its business in chemicals. It plans to spend ₹47,000 crore (around $5.7 billion) to build a new factory in Karnataka. This factory will make chemicals used in making plastic and paint. These are products that will always be in demand, so this is a smart move for MRPL. The factory will be ready in 3 to 5 years. Another part of MRPL’s plan is to build a new plant that will make ethanol from farming waste. This will help the company use things like corn and cotton stalks to make ethanol, which is good for the environment. They are also working on improving their pollution control systems to meet strict rules.
Analyst Insights:
- Market capitalisation: ₹ 23,753 Cr.
- Current Price:₹ 136
- 52-Week High/Low: ₹ 260 / 98.9
- Stock P/E: 28.6
- Dividend Yield: 2.21%
- Return on Capital Employed (ROCE): 25.8%
- Return on Equity: 31.9%
MRPL is also making its power systems better and updating its refinery to improve production. They are setting up a new plant to make a special chemical used in medicines and perfumes. This will allow MRPL to make this chemical on its own without relying on others. All of these plans show that MRPL wants to grow its business, follow environmental rules, and keep up with changes in the industry.
Mangalore Refinery and Petrochemicals Ltd (MRPL) has shown good growth over the years. Its net profit has increased by 60% each year for the past five years. This shows that the company is doing well in making money. The company has a return on equity (ROE) of 17%, which means it is earning a good return on the money invested by its shareholders.
MRPLcano refines 15 million metric tonnes of oil per year. This large refining capacity helps the company produce a lot of fuel and petrochemical products, which are in high demand. The company also has an operating profit margin of 12%, which means it keeps a good share of the revenue it generates after costs.
The company is financially stable, with a debt-to-equity ratio of 0.3. This low ratio shows that it does not rely too much on borrowing to run its business. MRPL has 101 fuel stations and plans to open more in the future, helping it grow its retail business.
Even though MRPL’s profits dropped slightly in the last quarter, it has shown consistent growth in the past. The company’s average yearly revenue growth is 8%, showing that it is still growing in the long term. All of these factors point to MRPL being a strong company with a good future ahead.