Mar'25 View on MRF Ltd

Madras Rubber Factory Limited (MRF) is the parent company of the MRF Group. The Co is engaged in the business of manufacturing Tyres. After falling from 1,50,000 level the stock is just near the 20EMA resistance and looks to cross 1,25,000 on back of following positive data sets. • Revenues of Rs6,883 cr (+14% yoy and +2% qoq) was 2% above our estimates. • Strong growth in the TBR/2W replacement segment demand. • Domestic/international rubber prices have corrected 2-5% over past one month. • Q3FY25: Top-line performance was strong • Revenue outperformance continues; decline in raw material basket to aid recovery. • Aggressive pricing strategy is aiding MRF to outpace the industry growth. • We expect earnings per share (EPS) to increase by 23.7% in FY26E and 13.2% in FY27E.