MKTR Shares Seen Rising Toward Rp 250 on Earnings Growth and Renewable Push
Key Takeaways
|
JAKARTA, Investortrust.id — Shares of PT Menthobi Karyatama Raya Tbk, or MKTR, are projected to reach Rp 250 in the near term, driven by strong earnings momentum and the company’s expansion into renewable energy. Analysts said the target reflects both rising net income and the launch of a new biomass pellet business that could add future revenue streams.
MKTR’s annual shareholder meeting approved a dividend payout of around 35 percent of 2024 net income, equal to Rp 18.21 billion. The company reported a significant jump in profit this year, with net income reaching Rp 13.23 billion in the first half of 2025, compared with Rp 7.92 billion in the same period last year. Revenue also increased to Rp 493.55 billion from Rp 457.16 billion.
Market participants said palm oil producers have attracted heavy accumulation from investors in recent months, following a rally in crude palm oil prices. While many plantation stocks have already advanced sharply, MKTR is seen as the next potential beneficiary of the sector’s momentum.
Beyond its core palm oil operations, Menthobi Karyatama has begun diversifying into renewable energy. In 2024 the company established a pilot facility to produce Biomass EFB (empty fruit bunch) pellets, using palm oil waste as feedstock.
The mini plant, with a daily capacity of two tons, has already demonstrated the ability to generate high-calorie, low-potassium, low-chlorine pellets suitable for industrial fuel, especially for coal-fired power plants.
Building on that progress, MKTR is now developing a larger Biomass EFB Pellet facility scheduled to begin commissioning by late 2025. The expansion aligns with Indonesia’s renewable energy agenda, particularly state utility PLN’s program to convert 52 coal-fired power plants to biomass co-firing starting this year.
“From last year’s limited production, Menthobi Karyatama has already been able to deliver high-quality biomass pellets that are safe and effective for industrial use,” said Wawan, a company representative.
The company’s renewable initiative is expected to strengthen its earnings outlook, support PLN’s clean energy transition, and underpin investor confidence in MKTR’s long-term valuation.
Valuation Outlook
According to InvestingPro data, MKTR closed at Rp 146 on Sept 16, 2025, within a 52-week range of Rp 89 to Rp 193. Its average fair value is estimated at Rp 124.70, implying a downside of 14.6 percent from current levels, with a fair value spread ranging from Rp 85.72 to Rp 212.88.
This suggests that while MKTR’s near-term rally could overshoot intrinsic value, the company’s earnings growth, dividend policy, and renewable expansion provide strong longer-term support. Investors should note the stock’s tendency to trade at a high P/E ratio relative to near-term earnings and its high price volatility, balanced by its position as a prominent player in the palm oil industry.
Promo!
Analyze stocks quickly and easily with InvestingPro — enjoy an exclusive discount for Investortrust readers. Click here to access the offer.