MMTC Shares Soar Over 13% Despite Weak Q4 Results: What’s Fueling the Rally?
MMTC Limited, a government trading company, saw its shares rise by more than 13% on May 29, 2025. This jump happened even though the company reported poor earnings for the March quarter. The stock hit ₹78.59 on the NSE, surprising many investors because the company’s profits and revenue fell sharply.
This sharp rise, despite weak financial numbers, has caught the eye of investors and experts. They are asking: What is causing this strong buying? And can the stock keep rising?
Q4 FY25 Results: Big Drop in Profits
MMTC’s report showed a huge drop in net profit for the quarter ending March 2025. Net profit was only ₹2.23 crore, down 96.8% from ₹69.78 crore a year earlier.
Revenue also fell by 64% compared to last year. It dropped to ₹0.23 crore from ₹0.64 crore. This means the company’s core business slowed down, likely due to weak demand, global commodity issues, and lower trade volumes.
FY25 Annual Performance: Still Weak
For the whole year, MMTC also faced challenges:
- Net profit fell by 54.9% to ₹86.63 crore (down from ₹192.18 crore in FY24)
- Revenue dropped 49.6% to ₹2.69 crore (down from ₹5.34 crore last year)
These declines show MMTC is struggling with its business operations in trading minerals, metals, coal, and agro-products.
Stock Performance: A Surprising Rally
Despite poor earnings, MMTC’s shares have done well recently:
- Rose 13.2% on May 29 alone
- Gained 38% in May 2025
- Up 7.7% in April 2025
- Increased 6% in March 2025
This is impressive because the stock had fallen for six months straight from August 2024 to February 2025. From its low of ₹42.55 in April 2025, the stock nearly doubled, though it is still far from the ₹131.88 peak it reached in July 2024.
Investors seem hopeful about a future recovery or short-term gains despite weak earnings.
Why Are Investors Optimistic?
Several reasons may explain the rally:
- PSU Sentiment: Government stocks are popular due to reforms and infrastructure plans.
- Undervalued Stock: After a long fall, MMTC looks cheap, attracting buyers hoping for a turnaround.
- Sector Rotation: With commodity prices stabilizing, traders expect better results soon.
- Strong Business Spread: MMTC deals in metals, minerals, fertilizers, and more, which could help when trade picks up.
About MMTC
MMTC started in 1963 and is based in New Delhi. It is one of India’s biggest international trading companies, operating across Asia, Europe, Africa, the Middle East, North America, and Latin America. It trades minerals, metals, hydrocarbons, fertilizers, agro products, and gold and silver. It also runs a wind power project in Karnataka.
This wide reach might explain why some investors are hopeful despite current problems.
Should You Buy MMTC Now?
Even though the stock is rising, MMTC’s business is still under pressure. Profits and revenues remain weak. Traders might enjoy short-term gains, but long-term investors should be careful.
Note: This is not investment advice. Always talk to a financial expert before making decisions.
MMTC’s Q4 results show a company facing tough times. But the stock market seems hopeful about a future recovery. Whether this rally continues will depend on the company’s next earnings, government policies, and global trade trends. For now, MMTC is a good example of how market sentiment can sometimes ignore weak financial results—at least for a while.
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