MRF Share Price

MRF Limited: Fundamental Analysis

MRF is India’s biggest and best tyre maker, located in Chennai, Tamil Nadu. Its full name is Madras Rubber Factory. MRF manufactures rubber products, including conveyor belts, paints, toys, treads, tyres, and tubes.

Furthermore, it oversees Chennai's MRF Pace Foundation and the Institute of Driver Development. As the world's second-strongest tyre manufacturer, MRF Limited has achieved a AAA brand grade.

About MRF share news

It is the first firm in India to achieve a ₹ 5,000 crore turnover and was crowned the top player in the tyre sector. With 14, 23, 33, and 27 dealers in the eastern, western, southern, and northern zones, respectively, MRF has a very robust and developed distribution network. MRF operates six manufacturing facilities throughout southern India.

MRF exports its goods to about 65 nations, and it does so in a strong and ideal market. MRF provides various tyre manufacturing services for various vehicles and applications. MRF has the faith and trust of its customers and strong brand values.

MRF has always taken different measures to suit themselves with tyres which can take on different terrain conditions. MRF stands in a powerful position in terms of financial condition. MRF is divided into three main parts: Funskool, MRF Racing, and MRF Pace Foundation. A company which advertises itself to be a tyre-making company in India, which is eco-friendly.

Tyre industry overview

According to a new report by the Automotive Tyre Manufacturers' Association (ATMA), India's tyre industry is projected to see its revenue grow more than twofold to $22 billion by fiscal year 2032, up from $9 billion in fiscal 2022. This projection comes from an in-depth study conducted by CRISIL Market Intelligence & Analytics (MI&A) Consulting.

The demand for tyres is rising due to the increased production of automobiles. This growth is further supported by the expanding export activities of vehicles, including tractors, buses, heavy trucks, and cars.

The rising income levels of individuals in India lead to higher sales of cars and two-wheelers, creating a positive market outlook. Additionally, the growing demand for vehicles in rural areas, with limited public transportation options, contributes to market expansion.

Furthermore, reduced logistics costs make Indian tyre manufacturers more competitive globally, boosting their export potential. The increasing levels of automation and advancements in tyre manufacturing provide attractive growth opportunities for industry investors in India. Moreover, the Indian government’s initiatives, like the Atmanirbhar Bharat Abhiyan, which promote domestic automobile manufacturing, further enhance market growth.

MRF Limited's competitors

Some of MRF Ltd’s major competitors include:

• JK Tyre & Industries Ltd.
• Apollo Tyres
• CEAT
• Goodyear India Ltd.
• TVS Srichakra Ltd
• Innovative Tyres & Tubes
• Continental
• Govind Rubber Ltd.
• Michelin
• Bridgestone

MRF Ltd. enjoys competitive advantages such as strong client relationships, compliance standards, diverse service offerings, and cost efficiencies. However, competition has intensified as more players enter the contract services space.

MRF share price history

• 1946: A young entrepreneur, KM Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras, now known as Chennai.

• 1949: Various products, including balloons and latex-cast squeaking toys, industrial gloves, and contraceptives, were produced. During this time, MRF established its first office.

• 1955: MRF soon became the only Indian-owned unit to manufacture the superior extruded, non-blooming, and cushion-backed tread rubber, enabling it to compete with the MNCs operating in India at that time.

• 1956: The quality of the product manufactured was of such a high standard that by the close of 1956, MRF had become the market leader with a 50% share of the tread rubber market in India. MRF's hold on the market was so effective that the large multinationals had no other option but to withdraw from the tread rubber business in India.

• 1960: The company was incorporated as a private limited company on November 5. It manufactures automobiles, aircraft, cycle tyres, and tubes in collaboration with the Mansfield Tire & Rubber Co. in Mansfield, Ohio, U.S.A. The tyres are sold under the trade name Mansfield Tyres (MRF).

• 2023: MRF launched steel Brace Radial Tyres for High-end bikes and received the 2023 Brand Finance Awards. The most valuable Indian Tyre brand is also the strongest Tyre Brand in the world, and it is ranked in the top 10 for sustainability.

Company Profile – Strengths and weaknesses

Strengths

• Reached milestone of ₹ 5,000 crores
• Strong network
• A large number of manufacturing units
• Powerful exporting market
• Strong portfolio
• Brand value
• Making varieties of tyres
• Financial condition
• The diversity of the company
• Reaching out with strong advertisements

Weaknesses

• An extreme competition

The MRF share price financials

Financial Metric	Value
Market Cap	₹ 53,967 Cr.
Book Value	₹ 39,384
Dividend Yield	0.17 %
ROCE	22.54 %
Face Value	₹ 10.0
ROE	19.13 %
MRF share price today	₹ 1,26,192.35

Shareholding Pattern of MRF share price Ltd.

Here’s the shareholding pattern of MRF Ltd:

• Promoters: 27.95%
• Foreign Institutional Investors (FIIs): 15.54%
• Domestic Institutional Investors (DIIs): 11.73%
• Public: 44.79%

Overall, MRF Ltd has a healthy mix of promoters and institutional and public shareholders. The shareholding pattern demonstrates the company's positive investment appeal for both domestic and foreign investors.

*The shareholding data is as of March 2024 and may change over time.

Peer Comparison

Stock	P/E Ratio	ROCE %	Div. Yield
MRF	25.93	16.86	0.14
Apollo Tyres	17.36	16.39	0.82
JK Tyre & Industries Ltd	13.26	19.16	0.49
CEAT	15.64	9.65	1.19 %