MRF Ltd’s fundamental analysis highlights key financial metrics: Market Cap of ₹57,223.09 crore, PE Ratio of 27.49, Debt to Equity of 16.89 and Return on Equity of 13.25%. These indicators reflect the company’s financial health and market valuation.
MRF Overview
MRF Ltd is an Indian company primarily engaged in the manufacturing and sale of tyres, tubes and related rubber products. It operates in the automotive component sector, specializing in tyre production for various vehicle types.
The company is listed on both the NSE and BSE. With a market capitalization of ₹57,223.09 crore, it’s currently 12.24% away from its 52-week high and 26.80% away from its 52-week low.
MRF Financial Results
MRF Ltd demonstrated strong financial performance in FY24, showing improvement in revenue and profitability. With notable growth across key metrics, the company has strengthened its financial position. Below is a comparison of FY24 to FY23 across several categories:
1. Revenue Trend: The company’s revenue increased to ₹25,169 crores in FY24, up from ₹23,009 crores in FY23, indicating a 9.4% growth.
2. Equity and Liabilities: Equity capital remained steady at ₹4.24 crores, while total liabilities rose to ₹26,849 crores in FY24 from ₹24,369 crores in FY23, showcasing a growth in both non-current and current liabilities.
3. Profitability: Operating profit improved significantly from ₹2,389 crores in FY23 to ₹4,254 crores in FY24, with an operating margin (OPM) increase from 10.27% to 16.69%.
4. Earnings per Share (EPS): EPS jumped to ₹4,907 in FY24 from ₹1,813 in FY23, reflecting a substantial rise in earnings.
5. Return on Net Worth (RoNW): Book value per share increased from ₹34,679 in FY23 to ₹39,383 in FY24, indicating higher shareholder returns.
6. Financial Position: Total assets increased to ₹26,849 crores in FY24 from ₹24,369 crores in FY23, reflecting improved financial health and a solid balance sheet.
MRF Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 25,169 | 23,009 | 19,317 |
| Expenses | 20,916 | 20,619 | 17,267 |
| Operating Profit | 4,254 | 2,389 | 2,050 |
| OPM % | 16.69 | 10.27 | 10.44 |
| Other Income | 316.84 | 253 | 316.99 |
| EBITDA | 4,570 | 2,642 | 2,367 |
| Interest | 353 | 319 | 254 |
| Depreciation | 1,430 | 1,253 | 1,205 |
| Profit Before Tax | 2,787 | 1,070 | 908 |
| Tax % | 25.33 | 28.12 | 26.29 |
| Net Profit | 2,081 | 769 | 669 |
| EPS | 4,907 | 1,813 | 1,578 |
| Dividend Payout % | 4.08 | 9.65 | 9.51 |
* Consolidated Figures in Rs. Crores
MRF Company Metrics
MRF Ltd’s company metrics include a market capitalization of ₹57,223.09 crore, a book value per share of ₹138, and a face value of ₹10. With a debt-to-equity ratio of 16.89, a return on equity of 13.25%, and a 0.15% dividend yield, these figures underscore the company’s financial position and investment profile.
Market Capitalization: Market Capitalization represents the total market value of MRF’s outstanding shares, amounting to ₹57,223.09 crore.
Book Value: The book value per share of MRF is ₹138, indicating the value of the company’s net assets divided by its outstanding shares.
Face Value: The face value of MRF’s shares is ₹10, which is the original cost of the shares as stated on the certificate.
Asset Turnover Ratio: The asset turnover ratio of 0.99 measures how efficiently MRF uses its assets to generate revenue.
Total Debt: The total debt of ₹2,821.5 crore represents the sum of all short-term and long-term debt obligations of MRF.
Return on Equity (ROE): The ROE of 13.25% measures MRF’s profitability in generating income from its equity investments.
EBITDA (Q): The quarterly EBITDA of ₹1,243.66 crore represents MRF’s earnings before interest, taxes, depreciation, and amortization.
Dividend Yield: The dividend yield of 0.15% shows the annual dividend payment as a percentage of MRF’s current share price, indicating the return on investment from dividends alone.
MRF Stock Performance
MRF Ltd has demonstrated consistent returns over various periods. The 1-year return on investment (ROI) stands at 23.2%, while the 3-year ROI is 19.1% and the 5-year ROI is 15.7%, reflecting steady growth over the years.
| Period | Return on Investment (%) |
| 1 Year | 23.2 |
| 3 Years | 19.1 |
| 5 Years | 15.7 |
If you invest ₹1,000:
In 1 year, your investment would grow to ₹1,232.
In 3 years, your investment would be worth ₹1,574.
In 5 years, your investment would rise to ₹2,077.
MRF Ltd Peer Comparison
MRF, with a CMP of ₹1,35,934.4 and a market cap of ₹57,636.19 crores, offers a P/E ratio of 27.93 and an ROE of 12.55%. In comparison, Apollo Tyres shows a higher one-year return of 38.7%, while JK Tyre leads with a remarkable 53.84% return. Balkrishna Industries and CEAT provide competitive dividend yields of 0.52% and 1.05%, respectively, with solid ROCE values across the peers. TVS Srichakra and Goodyear India have lower market caps but show resilience in profitability and returns.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Balkrishna Inds | 3077.9 | 59501.1 | 36.51 | 17.55 | 84.3 | 20.83 | 17.62 | 0.52 |
| MRF | 135934.4 | 57636.19 | 27.93 | 12.55 | 4865.46 | 25.11 | 16.12 | 0.15 |
| Apollo Tyres | 515.6 | 32745.8 | 19.29 | 13.22 | 25.62 | 38.7 | 16.45 | 1.16 |
| CEAT | 2852.4 | 11537.98 | 17 | 18.13 | 161.24 | 33.55 | 20.42 | 1.05 |
| JK Tyre & Indust | 428.3 | 11166.79 | 12.9 | 20.62 | 32.91 | 53.84 | 19.31 | 1.05 |
| TVS Srichakra | 4283.75 | 3281.35 | 33.17 | 10.65 | 122.34 | 42.11 | 11.14 | 1.11 |
| Goodyear India | 1159.7 | 2675.43 | 33.19 | 15.98 | 34.95 | -10.59 | 21.98 | 1.29 |
MRF Ltd Shareholding Pattern
MRF Ltd shows a stable promoter holding of 27.78% from March to June 2024. FIIs decreased to 19.08% in June from 19.75% in March, while DIIs slightly increased to 10.74%. Retail and others rose from 41.92% to 42.41% over the same period.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 27.78 | 27.78 | 27.75 |
| FII | 19.08 | 19.75 | 19.41 |
| DII | 10.74 | 10.57 | 11.45 |
| Retail & others | 42.41 | 41.92 | 41.39 |
MRF Limited History
MRF Limited is a prominent Indian company specializing in tyre manufacturing and rubber products. It offers a wide range of tyres for various vehicles, including passenger cars, trucks, buses and two-wheelers, catering to both domestic and international markets.
The company’s product portfolio includes high-performance tyres like the PERFINZA series, designed for luxury and sports vehicles. MRF also produces tyres for heavy-duty trucks, light commercial vehicles and off-road applications, demonstrating its diverse manufacturing capabilities.
Beyond tyres, MRF has expanded into sports goods, offering cricket equipment under the Virat Kohli range and other specialized products. The company’s international presence is supported by subsidiaries like MRF Corp Ltd., MRF Lanka Pvt. Ltd. and MRF SG PTE LTD., enhancing its global market reach.
How To Invest In MRF Ltd Share?
To invest in MRF shares, open a demat account with Alice Blue. Research the company’s fundamentals, financial performance and position in the tyre industry. Analyze historical stock data and compare it with industry peers.
Determine your investment strategy based on your financial goals and risk tolerance. Consider factors such as automotive industry trends, raw material costs and MRF’s market share. Decide on the investment amount and timing.
Place your order through the broker’s platform. Regularly monitor your investment, staying updated on company news, quarterly results and tyre industry trends. Consider seeking advice from a financial advisor for personalized guidance and to ensure your investment aligns with your overall portfolio strategy.
MRF Ltd Fundamental Analysis – FAQs
MRF Ltd’s fundamental analysis reveals a Market Cap of ₹57,223.09 crore, PE Ratio of 27.49, Debt to Equity of 16.89 and Return on Equity of 13.25%. These metrics provide insights into the company’s financial health, profitability and market valuation.
MRF Ltd’s market capitalization is ₹57,223.09 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current stock price by the number of outstanding shares.
MRF (Madras Rubber Factory) is an Indian tyre manufacturing company. It produces a wide range of tyres for various vehicles, including cars, trucks and two-wheelers. MRF also manufactures other rubber products and has diversified into sports goods.
MRF Ltd is a public limited company with diverse ownership. The promoter group, including the Mammen Mappillai family, holds a significant stake. As a listed entity, ownership is distributed among various institutional and individual shareholders through stock market participation.
The main shareholders of MRF include the promoter group (Mammen Mappillai family), institutional investors and public shareholders. For the most current and accurate information on major shareholders, refer to the company’s latest shareholding pattern disclosure.
MRF Ltd operates in the automotive components industry, specifically in the tyre manufacturing sector. The company produces a wide range of tyres for various vehicles, including passenger cars, commercial vehicles and two-wheelers, serving both domestic and international markets.
To invest in MRF shares, open a demat account with Alice Blue. Research the company’s performance and tyre industry trends. Decide on your investment strategy. Place your order through the broker’s platform. Regularly monitor your investment, staying informed about market conditions. Consider seeking financial advice for personalized guidance.
Determining if MRF is overvalued or undervalued requires analyzing its financials, growth prospects, industry position, and peer comparison. Consider factors like PE ratio, future earnings potential and tyre industry trends. Consult recent analyst reports for expert opinions on the company’s valuation.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
