MMTC share price surges over 50% in May; is it still a stock to buy?

MMTC share price continued witnessing strong buying interest for the third consecutive session on Friday, May 30, rising over 8 per cent in morning trade on the BSE. MMTC share price opened at ₹84.21 against its previous close of ₹81.36 and surged 8.4 per cent to an intraday high of ₹88.20.

At this price, the stock has jumped 38 per cent in three sessions and 57 per cent in May after an 8 per cent gain in April and a 6 per cent gain in March.

MMTC share price hit a 52-week low of ₹42.55 on April 7 this year and a 52-week high of ₹131.88 on July 26 last year.

MMTC on May 29 reported a 96.8 per cent year-on-year plunge in its consolidated net profit for Q4FY25 to ₹2.23 crore, compared to ₹69.78 crore in the same quarter last year. Total income dropped 32 per cent YoY to ₹44.14 crore in Q4FY25 from ₹64.98 crore in Q4FY24.

Is MMTC still a stock to buy?

The stock's sharp gains since March have stretched its valuations. Its current trailing twelve-month price-to-earnings (PE) ratio, near 150, is high in the industry.

The stock looks overbought, and technical charts indicate the possibility of a profit booking.

Anshul Jain, the head of research at Lakshmishree Investments, highlighted that MMTC stock broke out of a cup and handle pattern at ₹63 and rallied sharply, testing the 50 per cent retracement level of its 66.25 per cent fall over 37 weeks, placed at ₹86.

"The rally has been steep and vertical, indicating that profit booking at current levels is highly likely. Traders are advised to book profits and wait for a fresh accumulation or consolidation pattern to develop before considering new long positions for the next leg," said Jain.

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