MRF stock analysis and expert insights in detail

Stock overview

Ticker	MRF
Sector	Auto Ancillary (Tyres)
Market Cap	₹ 63,200 Cr
CMP (Current Market Price)	₹ 1,48,800
52-Week High/Low	₹ 1,53,000/1,00,500

About MRF India Ltd.

MRF (Madras Rubber Factory) is India’s largest tyre manufacturer and among the top tyre brands globally. With a diversified portfolio spanning passenger cars, two-wheelers, trucks, buses, and off-the-road tyres, MRF has established itself as a brand synonymous with durability and premium quality.

Primary growth factors for MRF India Ltd

1. OEM Demand Revival: Auto sector rebound especially in commercial vehicles and two-wheelers is aiding volume growth.
2. Premiumization: Rising share of high-margin radial and performance tyres.
3. Export Opportunities: Targeting Southeast Asia, Africa, and Latin America as growth markets.
4. Brand Strength: Strong brand recall and premium positioning allow better pricing power.
5. Capex for Capacity Expansion: Investments in Gujarat and Tamil Nadu plants to increase output.

Q4 FY25 financial performance

Metric	Q4 FY 25	YoY Growth	QoQ Growth
Total Revenue	₹ 7,074 cr	11%	1%
Operating Expenses	₹ 6,428 cr	11%	-2%
PAT	₹ 512 cr	30%	60%
EPS	₹ 1,207	26%	62%

• MRF’s strong Q4 performance was driven by easing raw material costs, improved product mix, and volume recovery across OEM and replacement segments.
• MRF also declared the highest ever dividend of ₹ 229 per share in the quarter.

Detailed competition analysis for MRF India

Company	Market Cap	Revenue	P/E Multiple	RoCE
MRF	₹ 1,48,800 cr	₹ 7074 cr	34x	14%
Balkrishna Industries	₹ 2,685 cr	₹ 2760 cr	36x	17%
Apollo Tyres	₹ 455 cr	₹ 6423 cr	23 x	11%
CEAT	₹ 3,377 cr	₹ 3529 cr	30 x	15%

MRF’s valuations are rich, but justified due to robust financials, low debt, and premium brand positioning. It also continues to be known in the market for it’s premium and durable products which adds to its brand heat.

Company valuation insights: MRF India

As per the Discounted Cash Flow analysis:

It estimates the intrinsic value of MRF shares based on expected future cash flows:

• Intrinsic Value Estimate: ₹1,60,00 per share
• Upside Potential: 8%
• WACC: 10.3%
• Terminal Growth Rate: 2,1%

Major risk factors affecting MRF India

• Raw Material Inflation: Rubber and crude-derived inputs remain volatile.
• Subdued Replacement Demand: Affected by economic cycles and rural income.
• Capex Overhang: Aggressive expansions may hit short-term ROCE.
• Competition: Gaining share in high-end segments from global players remains tough.

Technical analysis of MRF India

• Resistance: ₹1,53,000
• Support: ₹ 1,44,000
• Momentum: Positive
• RSI (Relative Strength Index): 66 (Overbought)
• 50-Day Moving Average: ₹1,43,780
• 200-Day Moving Average: ₹1,42,000

MRF India stock recommendation by Ketan Mittal

Recommendation: Buy on dips

Target Price: ₹1,60,000 (12-month horizon); 

Rationale

Strong brand equity and a dominant share in replacement markets.

Clean balance sheet with limited debt.

Good play on India’s auto recovery with consistent profitability.

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Conclusion

MRF may not be a multi-bagger from here, but it remains a solid blue-chip bet in the tyre industry. Investors looking for a stable, growth-oriented stock with limited downside and strong fundamentals may find MRF an attractive long-term hold.