Shares of leading tyre maker MRF Ltd grew over 1 per cent to hit its all-time high and became the first Indian stock to cross ₹ 1 lakh per share mark on Tuesday. The stock opened higher and rose further by 1.48 per cent to hit its 52-week high of ₹ 1,00,439.95 apiece on National Stock Exchange. The stock hit a record high of ₹ 1,00,300 per share on BSE.
MRF shares have rallied more than 46 per cent in the past year to hit their lifetime high levels on Tuesday. Previously the stock had hit its all-time high of ₹ 99,933 per share on May 8 following its quarterly and annual financial results.
As per the news agency, the stock has only one “buy” call, two “hold” and eight “sell” calls. The 12-month target price on the stock is Rs 84,047, indicating a 16 per cent slump from the current level. Most analysts have a “sell” rating on the stock because of its high valuation. At a trailing price-to-earnings ratio of 55x, it is the most expensive tyre stock.
A year back, too, analysts were cautious. There were four “buy” calls, three “hold” and five “sell” calls on the stock and the 12-month target price were around Rs 70,800. The stock, however, has managed to cross the Rs 1 lakh mark.
The stock had closed above the 90,000 mark for the first time in January 2021 and breached the record ₹ 1 lakh mark after a gap of nearly two and a half years.
MRF crossed the ₹ 10,000 per share mark in February 2012. Interestingly, MRF has never issued bonus shares or carried out a stock split to increase its shareholding base even as it has been paying dividends.
The company on May 3 announced a final dividend of ₹ 169 (1690 per cent) per share of ₹ 10 each for 2022-23. MRF announced and paid two interim dividends of ₹ 3 each for FY23 earlier. The total dividend payout in FY23 stands at ₹ 175 per share (1,750 per cent) for the financial year ended 31st March.
MRF reported a more than two-fold jump in net profit to ₹ 410.7 crore for the March quarter of FY23 compared to ₹ 157 crore in the corresponding period of the previous year. Its revenue from operations rose by 10.1 per cent to ₹ 5,725.4 crore in the March quarter from ₹ 5,200.3 crore in the year-ago quarter.
Its operational profit spurted by 59.8 per cent on year to ₹ Rs 843.1 crore in the quarter compared to ₹ 527.6 crore a year ago. MRF’s margins improved to 14.7 per cent in the March quarter from 10.2 per cent in the March quarter of FY22. MRF shares were trading 1.07 per cent higher at ₹ 1,00,000 apiece on BSE at 10.43 AM.
Madras Rubber Factory, commonly known as MRF or MRF Tyres, is an Indian multinational tyre manufacturing company and the largest manufacturer of tyres in India. It is headquartered in Chennai, Tamil Nadu, India. The company manufactures rubber products including tyres, treads, tubes and conveyor belts, paints and toys. MRF also runs the MRF Pace Foundation, in Chennai and MIDD – MRF Institute of Driver Development in Chennai. MRF Limited has emerged as the world’s second-strongest tyre maker, with a AAA- brand grade.
(With inputs from agencies)
