MRF, India’s most expensive stock, experienced a significant fluctuation on Wednesday, January 17. Initially soaring to a new 52-week high of ₹150,000, a 9% increase, the stock later reversed its gains, closing 1% lower. This marked the continuation of a six-session winning streak, with MRF’s shares starting the year at ₹129,439.2 and climbing 15.8% to date. In the calendar year 2023, the stock witnessed a 30% rise, notably surpassing the ₹1,00,000 milestone in June 2023, a first for an Indian company.
On January 17, MRF shares opened at ₹1,36,999 and reached a peak of ₹1,50,000, surpassing the previous close of ₹1,36,479.30 on the BSE, before settling at ₹1,34,969.45, a 1.1% drop. Over 15 years, MRF has mostly seen positive annual performances, with a standout 96% rally in CY14 and 48% in CY17. The stock has grown 5,588% from ₹2,003 to its current price.
In the July-September quarter, MRF’s consolidated net profit saw a significant 374% year-on-year increase, rising to ₹587 crore from ₹123.9 crore the previous year. The company’s operating revenue grew 6.71% year-on-year to ₹6,217 crore in Q2 FY24. Despite a slight increase in revenue, MRF improved its margins, aided by lower raw material costs. The cost of materials consumed dropped to ₹3,748.9 crore from ₹4,161.18 crore year-on-year, and total expenses decreased as well.
Read more: Most Expensive Share in India
Meanwhile, India’s domestic equity benchmarks, the Sensex and Nifty 50, experienced their largest single-day percentage loss since June 2022 on the same day. The Sensex plunged 1,628.01 points (2.23%) to 71,500.76, and the Nifty 50 fell 460.35 points (2.09%) to 21,571.95. This decline was largely influenced by a steep drop in HDFC Bank’s shares following its Q3 results, with concerns raised over the bank’s flat Q3 margins.
