MRF Ltd - +70% annual operating profit margin
A tyre sector leader and India's most expensive stock.
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Company name - MRF Ltd
Last closing price(NSE:MRF) - ₹140973.9 (as on 27-Sep-2024)
Estimated reading time - 3 minutes
The updated performance of all our past analyses is available here.
Executive Summary
Madras Rubber Factory Limited (MRF) is the parent company of the MRF Group. The company is engaged in the business of manufacturing tyres.
The p manufactures tyres (flagship) for Passenger cars, Two-wheelers, Three Wheelers, OTR, Trucks, Farm tractors, LCVs, Tubes & flaps, SCV, Pick up cars, MCV and ICV.
The debt-to-equity is 0.17% and the ROCE is at 16.1%
The company improved annual operating profit margins significantly by 70%. This led to a net profit increase of 70.6% and EPS increase of 70.65%.
Stock price chart
Detailed analysis
About the company
Madras Rubber Factory Limited (MRF) is the parent company of the MRF Group. The company is engaged in the business of manufacturing tyres.
The company manufactures tyres (flagship) for Passenger cars, Two-wheelers, Three Wheelers, OTR, Trucks, Farm tractors, LCVs, Tubes & flaps, SCV, Pick up cars, MCV and ICV.
It also manufactures Sports goods, Paints & Coats and Pretreads. It also manufactures Puzzles, games, and toys for kids through its brand Funskool.
It also has the distinction of being the most expensive stock in India currently.
Future prospects
What is the company’s plan to maintain earnings growth in future?
Increasing % share of exports
Positioning products for SUVs to the OE manufacturers
Potential risks that can hamper the future growth?
Slowing growth in the automotive sector overall
Financial analysis
Overview
The promoter holding is 27.8% and the pledged percentage is 0%.
The debt-to-equity is 0.17% and the ROCE is at 16.1%
Quarterly results
Growth in key metrics in the latest quarter Q1 - 2025 compared to the last year’s same quarter -
The company reported a 11.74% growth in sales in the latest quarter.
A 11.1% dip in operating profit margin was reported.
Annual results
Growth in key metrics in the last financial year 2024 compared to the previous financial year -
The annual sales increased by 9.39%.
The company improved operating profit margins significantly by 70%.
This led to a net profit increase of 70.6% and EPS increase of 70.65%
Peer comparison
MRF has the highest sales growth among it’s peers at 9.15%.
Tyres sector participation - we covered CEAT Ltd on 25-Sep and the price has moved +7.62% since then.
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Credits : Financial data source - screener.in