MRF

— Overview 🛞 What is MRF? MRF Ltd (Madras Rubber Factory) is India’s largest tyre manufacturer and among the top global tyre companies. Founded in 1946, it is headquartered in Chennai and supplies tyres across passenger vehicles, commercial vehicles, two-wheelers, tractors, and defence. 📊 Business Segments Passenger Vehicle (PV) tyres Commercial Vehicle (CV) tyres Two-wheeler tyres Farm & Off-highway tyres Exports & motorsport tyres MRF also has presence in conveyor belts, paints, toys, and sports goods, though tyres dominate revenue. 💰 Revenue & Cost Structure Raw materials: Natural rubber, crude-linked inputs (carbon black) Revenue drivers: Auto sales, replacement demand, pricing power Exports: Key margin stabiliser during domestic slowdown 👉 Replacement demand (~70%) provides cyclical stability. 📈 Key Strengths Strong brand moat & premium positioning Market leader in CV & PV tyre segments Long OEM relationships (Maruti, Tata, Mahindra, etc.) Consistent pricing power in upcycles Conservative balance sheet ⚠️ Key Risks Volatility in natural rubber & crude prices Auto industry cyclicality High working capital needs Limited free float (stock liquidity risk) 📉 Valuation Character Trades at premium valuations vs peers Low dividend yield, high retained earnings Stock price is expensive but scarcity-driven