MMTC Share Price Soars Despite Weak Q4 Performance:-
The surge in the shares of MMTC company has become a topic of discussion everywhere because the Quarter 4 numbers of this company are very poor numbers but still the company’s shares are continuously witnessing huge surges. Friends, if about the last two days, the last two trading sessions and if about the last one month, then the company’s shares have fallen by 50-52% and the company’s Quarter 4 numbers which have come out are not making any difference to the company’s prices here. Today the company has achieved the price of ₹ 86. In a very brilliant way.
Financial Snapshot: Declining Revenues and Profits:-
There is a competition among buyers for the company’s shares. Here almost everyone is talking about buying the shares of this company. If about the shares of this company. Today, 20 crore shares of this company’s shares were traded yesterday and 10 crore shares were traded today. This figure is also going to increase because the market is active currently. Friends, this stock was traded in around 1 crore or 80-85 lakh shares. The volume that has come now can take the stock in a new direction.
But today will make such a disclosure that all of you will learn a new lesson, a new energy, a new learning as to why is this happening and can the shares of this company also be dumped? If you see here, the market cap of Rs 12,798 crore is not a company with a very big market cap. After hitting a 52 week high of ₹ 132, the stock is now trading around ₹ 80-85. Book value only Rs 11. Intrinsic value is only eight. P 131 seems very expensive, because of all these three things, the ROC of the company’s share is also good, it is limited, ROC both are below 10 here, and if we see, the operating profit margin is negative of 5155 and if we see about the company, the sales growth is negative, profit growth is negative and now will show you all the figures of this company which can open the eyes of all of you. After that you what are those things which are being hidden from all of you.
Profit of the Company:-
At the sales here, in March 2025, the company was able to sell only ₹ 3 lakh. Earlier, if we look at the sales of ₹ 25 lakh in December and if we talk about March 2022, then the company used to do sales of 2255 crores. What happened today ? All the figures of the company seem to be failing. The operating profit of the company is negative. And look at the operating profit margin, how bad the situation of the company has become today. Earlier in March 2022, there was a positive operating profit margin of 22%. That’s why showing this sheet to all of you. The company used to make a profit of around Rs 118 crore and today that profit has come down to just Rs 2 crore and huge declines are being witnessed continuously. Earnings per share fell to 0.01 from 0.79. So guys the numbers are bad. The condition of the company is very bad. Still why are the company’s shares falling?
Government Ownership and Market Dynamics:-
In this company also, about 90% holding is with the government and 1 1/2% holding is with LIC, due to which investors are keeping an eye on this company and the shares of this company are running up. The share is being brought into discussion and friends the public which is only 8% is buying it and driving away the share. This type of action seems to be going on here. Now this stock has increased by 50%. The figures are very bad. But should one buy the company’s shares right now or not? Because it is an overbought share and after the news that you today, all of you need to be even more cautious. Come on about the PE ratio of the company then the PE ratio is going to reach around 150, which indicates that the company’s share is in the overbought zone.
Overvaluation Concerns:-
About the company right now, the PE ratio is around 150 and the stock looks overbought. After that, there is 50% retracement level of 50 which comes around ₹ 86. Somewhere or the other this is definitely sowing the seeds of doubt in the mind. Now in such a situation, what should be done within the share ? Let’s try to find out. It is being said in many newspapers that this is a government company whose entire profits have been wiped out. Nevertheless the company’s shares are continuously soaring. Friends, there has been a huge decline of 96.8% in the profit of this company. Still, the company ‘s shares are continuously falling. Why is the share of MMTC company falling? Let’s talk about this first. MMTC company’s share went up by 14% and all the PSU stocks are on fire. Why? Friends, let me tell you all that here around the market sentiments, a potential vehicle scrappage policy is coming which is boosting the PSU trading stocks which includes MMTc, STc and MSTc. The Government of India can announce a very big policy regarding vehicle scrappage.
Technical Analysis: Breakout Patterns:-
It hasn’t happened yet and because of this announcement all these PSU stocks are running away. However,
there is a herd mentality in the stock market, once the stock starts running, the whole world starts chasing it. We are seeing something similar in the case of MMTc also. Now the time has come for the news that you all want to know about. The news is that where MMTC stock is trading today, it has come from the level of ₹ 1100. The stock showed a level of ₹ 15 from the level of ₹ 1100. After that, today it has zoomed by 471% in the last 5 years. Should you buy it today?You all will be shocked and surprised to know this because it is very important to know what was the value of ₹ 1100 at that time and what is its value today. Is it a big deal to increase from ₹15 to ₹8586 today or was it a big deal to increase from ₹1100 to ₹15. You will see a lot about this which people are not discussing and which is being hidden.
Lessons for Investors:-
What are the targets coming out regarding MMTC share. The targets are quite good regarding this stock because MMTC has also broken the 200 day moving average upwards which is a bullish signal. According to technical analysis. The current support level is around ₹ 70 to ₹ 75 and a crucial resistance can be seen around ₹ 80 to ₹ 90. If it crosses upwards then new targets can also be seen coming into the company’s share .This company has not reached this level today. This company once used to trade at around ₹ 1300 and from there the share price of this company came down to ₹ 15 and after reaching ₹ 15, today the share price of the company has started to rise. In 2010, when ₹1100 and ₹1200 had a lot of value, it had drowned the investors’ money. Because if ₹1100 became ₹1500 by ₹15 then 98% of people’s capital would have been lost.
Conclusion:-
One lesson that all of you will definitely learn from this is that yes, the total capital should not be invested in a single stock by trusting it because something similar was seen happening here as well. This is still the monthly time frame chart of the company’s shares. Would reduce this a little bit because then you will see some things becoming more clear here. You see here, this time frame is the daily time frame and here will show you all a very beautiful view. What kind of breakout scenario has happened here and a very beautiful pattern seems to be forming here. If you look here, you will find a pattern which is named Cup and Cone Pattern and will make this pattern of it. And look, the cup is made and here the cone is made. He has had a breakout. Now take the view upwards. What kind of targets will you all get from this Cup & Co pattern in the coming time. Targets are a different thing. But note one thing. What kind of very special volume has come in the shares of this company. If you look at the chart before, we have never seen such volume as is there in this frame. So wait for a crucial level because whenever such a big investor enters a stock, he waits for a big level. That level could be of 90 or even 100. To whom he exits and then the shares get dumped, friends. do not fall. He gets dumped. Ok? So these kinds of things can also happen inside shares. You too please wait. But why is MMTc rising ? Have tried to explain it very well. Now recently a breakout of a very good level around 85 is also seen. There is no major resistance in the next from here. Before ₹105, it is possible that the share may show its levels upto that level to all of you. After that if you look in the next section, you can see the levels up to ₹ 130. Often spot such slightly risky stocks only after taking advice from my financial advisor according to the levels. So take care and make your journey efficient, good, better.