MRF shares price jumped over 1% on Tuesday to achieve an astounding feat as the tyre maker became the first Indian shares to hit Rs 1 lakh mark. The stocks hit the six-digit mark of Rs 1,00,439.95 on NSE, making history at Dalal Street. Shares of MRF advanced nearly 3% in the last five trading sessions. The company today is commanding a total market capitalization of close to Rs 42,500 crore
MRF shares have gained more than 45% in the last one year, and around 82% in the last three years. The stock is up 52% from its 52-week low of Rs 65,878. Year-to-date, MRF share price has rallied 13%, outperforming benchmark Nifty50 which has risen over 2%
MRF has now gained 900% from the time it first crossed the mark of Rs 10,000 on February 21, 2012. It has taken the stock more than two years to reach Rs 1 lakh from Rs 90,000. The stock closed above the mark of 90,000 for the first time on January 20, 2021. MRF has been paying dividends but has never issued a bonus share or carried out a stock split
Shares of MRF are trading at price-to-earnings (P/E) multiple of 55 times, while it is trading at a price-to-book value (P/BV) multiple of 2.89 times. Its return on equity (RoE) stands at 5.35%, while the return on capital employed (RoCE) is seen at 7.94%. MRF's 1-year return vs Nifty is +27.6%
Promoters own 27.84% stake in MRF as of March 31, 2023, while the remaining 72.16% stake is with public shareholders including 18.05% with FIIs and 11.66% with DIIs. However, promoter pledging is only 0.09%, according to the latest shareholding data. The consensus recommendation from nine analysts for the stock is a strong sell, as per trendlyne data
Kotak Institutional Equities pegs MRF's fair value at Rs 66,000, close to its 52-week lows. Motilal Oswal, in its report released in May 2023, had a 'sell' call on the stock with a target price at Rs 75,400. However, according to technical analysts, MRF on its quarterly charts, has been in a strong uptrend from the levels of 1,470, by making higher tops & higher bottoms formation
"This stock structurally is in multiyear bull run and it’s more of an investment bet than trading. At the current juncture MRF stock is trading at its lifetime highs & heading to test its resistance levels placed Rs 1,02,795. A quarterly close above the resistance levels, will open a massive upside in this stock as technical indicator MACD exhibits a fresh buy signal, with target projected at Rs 1,47,725 levels," Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking told BT
"So, investors holding on to this stock should continue to hold on to their long positions and any dip towards Rs 89,000-90,000 levels should be utilized as a buying opportunity to add more to their portfolio," Sujit Deodhar of Wellworth Share & Stock Broking said
Brokerage firm Elara Capital had an 'accumulate' rating on the stock with a target price of Rs 1,00,000. Elara said despite aggressive competition recently, MRF’s revenue share remained largely intact among peers, contradictory to other leaders in consumer-facing businesses
MRF reported an 86% jump in consolidated net profit at Rs 313.5 crore for the quarter ending March 31, 2023. It reported consolidated net profit of Rs 168.5 crore in the year-ago period. The company had also announced a dividend of Rs 169 apiece. It consolidated revenue from core operations rose 10% to Rs 5,842 crore for the fourth quarter ended March 2023 as compared to Rs 5,305 crore a year ago
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