MMTC Shares Surge to 52-Week High as Investors Take Notice

MMTC, a state-run company, is making headlines as its shares soared by an impressive 20% on Wednesday, hitting a one-year high of Rs 102.60. This remarkable jump has pushed the stock’s value up by a whopping 70.57% since the beginning of the year.

Several technical analysts are buzzing about the stock’s strong performance on daily charts. Osho Krishan, a Senior Research Analyst from Angel One, highlighted the significant upward movement accompanied by high trading volumes, suggesting that MMTC might continue on this upward trajectory. He predicts potential price targets between Rs 114 and Rs 120 in the short term, with immediate support placed at the Rs 95 level.

Ravi Singh, who serves as Senior Vice-President for Retail Research at Religare Broking, also noted the stock’s strength. He believes it could reach an upside target of Rs 110 soon, advising investors to keep a stop loss at Rs 95 for safety.

Adding to the positive sentiment, Shiju Koothupalakkal, a Technical Research Analyst at Prabhudas Lilladher, mentioned that the next visible upside targets could be between Rs 115 and Rs 135. He also pointed out that there might be some consolidation in the stock’s performance, with short-term support remaining at Rs 95

Today, MMTC’s shares saw heavy trading activity on the BSE with around 84.94 lakh shares exchanging hands, a significant uptick compared to the two-week average volume of 16.99 lakh shares. This influx of activity resulted in a turnover of Rs 83.56 crore, giving the company a market capitalization of Rs 15,390 crore.

The stock has consistently traded above several simple moving averages, and its 14-day relative strength index (RSI) stands at 70.31, indicating that investors are driving the price up. Typically, an RSI above 70 signals that a stock may be overbought.

Currently, MMTC displays a price-to-equity (P/E) ratio of 225.63 alongside a price-to-book (P/B) value of 11.36. Its earnings per share (EPS) is reported at 0.45, coupled with a return on equity of 5.04.

As an international trading firm specializing in minerals, MMTC is primarily government-owned, with the government holding an 89.93% stake as of June 2024. This substantial ownership reflects the significance of MMTC in India’s economic landscape.