MRF, the renowned parent company of the MRF Group, stands as a stalwart in tire manufacturing. With a rich legacy and a commitment to excellence, MRF has carved its niche as a leading force in the industry. This article delves into the comprehensive spectrum of the company, exploring its history, achievements, product offerings, market presence, and future outlook.
From its inception to its current standing, we unravel the intricate layers that contribute to MRF’s enduring success and its continued impact on the global tire market. Join us on a journey through the corridors of this illustrious enterprise.
About MRF Ltd
MRF boasts a diverse portfolio of products and services extending beyond its flagship tire offering. From catering to the needs of passenger cars, two-wheelers, trucks, and farm tractors to providing solutions for sports enthusiasts with its sports goods, paints, and coats, MRF covers a wide spectrum of consumer demands. Additionally, the company ventures into entertainment and education with its line of puzzles, games, and toys under the brand Funskool. Alongside its expansive product range, MRF also offers a range of services including tire maintenance and enhancement through Tiretok, Tyredrome, MRF Fasst, Muscle Zone, and Midd, further solidifying its presence in the market.
In terms of market share, MRF stands tall as the largest player in the Indian tire industry, commanding a significant 29% share as of FY21. This dominance is coupled with the recognition of MRF as the sixth strongest brand in the country, a testament to its enduring reputation and consumer trust. Moreover, the company’s revenue split in FY22 reflects a stronghold in the automobile tire segment, accounting for 90% of its revenue, with a growing focus on exports which contributed 9% to its revenue stream. With a strong presence both domestically and internationally, MRF continues to expand its reach and influence across diverse markets, driven by innovation and strategic growth initiatives.
Q3 Financial Highlights: MRF Ltd’s Consolidated Performance
- MRF Ltd, headquartered in Chennai, announced its Q3 results for the financial year 2023.
- The company reported a consolidated Profit After Tax (PAT) of Rs 509.71 crore for the October-December 2023 quarter.
- This marks a significant increase from the PAT of Rs 174.83 crore recorded during the same period in the previous fiscal year.
- For the nine months ending December 31, 2023, the consolidated PAT surged to Rs 1,685.12 crore, compared to Rs 428.29 crore recorded a year ago.
- The consolidated total income for the quarter stood at Rs 6,240.08 crore, up from Rs 5,715.91 crore in the same period last year.
- For the nine months, the consolidated total income amounted to Rs 19,042.88 crore, compared to Rs 17,349.66 crore registered in the previous fiscal year.
- The Board of Directors declared a second interim dividend of Rs 3 per equity share (30 percent) for the financial year ending March 31, 2024, payable on or after March 4, 2024.
Below are the trading platforms that you can use to purchase MRF shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| April 2024 | 148,060.44 | 128,748.21 |
| May 2024 | 145,872.35 | 126,845.53 |
| June 2024 | 151,123.76 | 131,411.96 |
| July 2024 | 149,612.52 | 130,097.85 |
| August 2024 | 155,597.02 | 135,301.76 |
| September 2024 | 161,820.90 | 140,713.83 |
| October 2024 | 158,647.94 | 137,954.73 |
| November 2024 | 163,407.38 | 142,093.38 |
| December 2024 | 167,492.57 | 145,645.71 |
In 2024, MRF Ltd’s share price is projected to experience fluctuations, with targets ranging from a maximum of ₹167,492.57 in December to a minimum of ₹126,845.53 in May. The company’s market capitalization stands at ₹58,098 crore.
As of April 2nd, 2024, the current share price is ₹137,093, with a high/low range of ₹151,445 and ₹83,326, respectively. MRF Ltd’s stock P/E ratio is 28.7, while the book value is ₹37,328. The dividend yield is 0.13%, with a Return on Capital Employed (ROCE) of 7.43% and a Return on Equity (ROE) of 4.87%. The face value of the stock is ₹10.0.
| When | Maximum Price | Minimum Price |
| January 2025 | 170,842.42 | 131,417.25 |
| February 2025 | 175,222.99 | 134,786.92 |
| March 2025 | 182,056.69 | 140,043.61 |
| April 2025 | 178,486.95 | 137,297.66 |
| May 2025 | 173,288.30 | 133,298.69 |
| June 2025 | 181,086.28 | 139,297.14 |
| July 2025 | 177,535.56 | 136,565.82 |
| August 2025 | 183,026.36 | 140,789.50 |
| September 2025 | 189,432.28 | 145,717.14 |
| October 2025 | 194,357.52 | 149,505.78 |
| November 2025 | 199,216.46 | 153,243.43 |
| December 2025 | 204,196.87 | 157,074.51 |
In 2025, MRF Ltd’s share price targets indicate a positive trajectory, with projections ranging from a maximum of ₹204,196.87 in December to a minimum of ₹131,417.25 in January.
The company maintains a diverse portfolio with four subsidiaries: MRF Corp Limited, MRF International Limited, MRF Lanka (P) Ltd, and MRF SG PTE. LTD. These subsidiaries contribute to MRF’s global presence and market expansion strategies. The fluctuating share prices reflect market dynamics and investor sentiments, highlighting the company’s resilience and potential for growth amidst changing economic landscapes.
| When | Maximum Price | Minimum Price |
| January 2026 | 210,322.77 | 161,786.75 |
| February 2026 | 215,715.66 | 165,935.13 |
| March 2026 | 224,128.57 | 172,406.60 |
| April 2026 | 219,733.90 | 169,026.07 |
| May 2026 | 213,333.88 | 164,102.99 |
| June 2026 | 222,933.91 | 171,487.62 |
| July 2026 | 218,562.65 | 168,125.12 |
| August 2026 | 225,322.32 | 173,324.86 |
| September 2026 | 233,208.60 | 179,391.23 |
| October 2026 | 239,272.03 | 184,055.41 |
| November 2026 | 245,253.83 | 188,656.79 |
| December 2026 | 251,385.17 | 193,373.21 |
In 2026, MRF Ltd’s share price targets continue to demonstrate upward momentum, with forecasts ranging from a maximum of ₹251,385.17 in December to a minimum of ₹161,786.75 in January.
Alongside its robust performance in the financial realm, MRF Ltd maintains a formidable presence in the realm of motorsports through its subsidiary, MRF Motor Sports. As the sole company in India to develop formula car tires, rally tires for various terrains, motocross tires, and FIA-CIK karting tires, MRF Motor Sports solidifies its position as a leading force in the motorsports arena. The company’s MRF Challenge series, featuring the MRF Formula 2000 cars, attracts top drivers worldwide, while its promotion of rallying and Supercross Championships underscores its commitment to fostering the motorsports community in India.
| When | Maximum Price | Minimum Price |
| January 2027 | 256,412.88 | 197,240.67 |
| February 2027 | 262,987.57 | 202,298.13 |
| March 2027 | 273,244.08 | 210,187.75 |
| April 2027 | 267,886.35 | 206,066.43 |
| May 2027 | 260,083.84 | 200,064.49 |
| June 2027 | 271,787.61 | 209,067.39 |
| July 2027 | 266,458.44 | 204,968.03 |
| August 2027 | 274,699.43 | 211,307.25 |
| September 2027 | 284,313.91 | 218,703.00 |
| October 2027 | 291,706.07 | 224,389.28 |
| November 2027 | 298,998.72 | 229,999.01 |
| December 2027 | 306,473.69 | 235,748.99 |
In 2027, MRF Ltd’s share price targets continue to exhibit an upward trend, with projections ranging from a maximum of ₹306,473.69 in December to a minimum of ₹197,240.67 in January. Alongside its financial growth, MRF Ltd expands its product portfolio with the introduction of new tires catering to various segments. The company introduces the MRF Markus tire for luxury SUVs, enhancing its presence in the SUV market.
Additionally, in the two-wheeler segment, MRF unveils ZAPPER C1 TL for scooters, ZAPPER V TL for the Aprilia Storm scooter, and REVZ MG TL for Yamaha motorcycles. Furthermore, the company launches off-road tires MRK-X Plus and MRK-E3, targeting vehicles with heavy loading requirements, offering improved mileage and puncture resistance.
| When | Maximum Price | Minimum Price |
| January 2028 | 312,603.16 | 240,463.97 |
| February 2028 | 320,618.63 | 246,629.71 |
| March 2028 | 333,122.75 | 256,248.27 |
| April 2028 | 326,590.93 | 251,223.79 |
| May 2028 | 317,078.58 | 243,906.60 |
| June 2028 | 331,347.11 | 254,882.39 |
| July 2028 | 324,850.11 | 249,884.70 |
| August 2028 | 334,897.02 | 257,613.09 |
| September 2028 | 346,618.42 | 266,629.55 |
| October 2028 | 355,630.49 | 273,561.92 |
| November 2028 | 364,521.26 | 280,400.97 |
| December 2028 | 373,634.29 | 287,410.99 |
- January 2028: ₹240,463.97 (Minimum)
- December 2028: ₹373,634.29 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 381,106.97 | 293,159.21 |
| February 2029 | 390,878.95 | 300,676.11 |
| March 2029 | 406,123.23 | 312,402.48 |
| April 2029 | 398,160.03 | 306,276.94 |
| May 2029 | 386,563.13 | 297,356.26 |
| June 2029 | 403,958.47 | 310,737.29 |
| July 2029 | 396,037.72 | 304,644.40 |
| August 2029 | 408,286.31 | 314,066.39 |
| September 2029 | 422,576.33 | 325,058.71 |
| October 2029 | 433,563.31 | 333,510.24 |
| November 2029 | 444,402.40 | 341,848.00 |
| December 2029 | 455,512.46 | 350,394.20 |
- January 2029: ₹293,159.21(Minimum)
- December 2029: ₹455,512.46 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 464,622.71 | 357,402.08 |
| February 2030 | 476,536.11 | 366,566.24 |
| March 2030 | 495,121.02 | 380,862.32 |
| April 2030 | 485,412.76 | 373,394.43 |
| May 2030 | 471,274.53 | 362,518.87 |
| June 2030 | 492,481.88 | 378,832.21 |
| July 2030 | 482,825.37 | 371,404.13 |
| August 2030 | 497,758.12 | 382,890.86 |
| September 2030 | 515,179.65 | 396,292.04 |
| October 2030 | 528,574.32 | 406,595.63 |
| November 2030 | 541,788.68 | 416,760.52 |
| December 2030 | 555,333.40 | 427,179.53 |
- January 2030: ₹357,402.08 (Minimum)
- December 2030: ₹555,333.40 (Maximum)
Financial Condition of MRF Ltd: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 16,062 | 16,237 | 16,162 | 19,317 | 23,008 |
| Expenses (Rs. Crores) | 13,744 | 13,855 | 13,208 | 17,256 | 20,604 |
| Operating Profit (Rs. Crores) | 2,317 | 2,382 | 2,954 | 2,061 | 2,404 |
| Other Income (Rs. Crores) | 416 | 335 | 205 | 315 | 245 |
| Interest (Rs. Crores) | 273 | 301 | 282 | 263 | 326 |
| Depreciation (Rs. Crores) | 808 | 982 | 1,141 | 1,205 | 1,253 |
| Profit before tax (Rs. Crores) | 1,652 | 1,434 | 1,737 | 908 | 1,070 |
| Net Profit (Rs. Crores) | 1,131 | 1,423 | 1,277 | 669 | 769 |
| EPS (Rs.) | 2,665.82 | 3,354.22 | 3,011.15 | 1,577.96 | 1,813.09 |
| Dividend Payout (%) | 2 | 3 | 5 | 10 | 10 |
- Over the past five years, MRF Ltd has experienced a mixed financial performance.
- Sales have exhibited steady growth, ascending from Rs. 16,062 crores in 2019 to Rs. 23,008 crores in 2023, with a compounded sales growth averaging at 9% over this period.
- However, the company’s profitability has demonstrated volatility, with operating profit and other income fluctuations.
- Net profit witnessed a downturn in 2022 before showing a slight recovery in 2023.
- The compounded profit growth over the last five years has been negative, at -9%.
- Despite this, MRF Ltd’s stock price has showcased impressive growth, boasting a Compound Annual Growth Rate (CAGR) of 18% over the past five years.
- Return on equity, however, has declined over the same period, indicating challenges in effectively utilizing shareholder funds.
- Overall, while MRF Ltd has witnessed robust sales growth and stock price appreciation, enhancing profitability and return metrics remain pivotal objectives for the company.
Equityrush’s Kunal Saraogi suggests purchasing MRF shares, setting targets at Rs 1,55,000 and Rs 1,60,000, while implementing a stop loss at Rs 1,45,000.
FAQs
What is MRF Ltd’s current market capitalization?
MRF Ltd’s current market capitalization stands at ₹58,098 crore.
MRF Ltd’s projected share price targets for 2025 range from a maximum of ₹204,196.87 to a minimum of ₹131,417.25.
MRF Ltd’s projected share price targets for 2030 range from a maximum of ₹555,333.40 to a minimum of ₹357,402.08.
What is MRF Ltd’s current Price-to-Earnings (P/E) ratio?
MRF Ltd’s current stock P/E ratio is 28.7.
What is MRF Ltd’s dividend payout percentage?
MRF Ltd’s dividend payout percentage stands at 10%.
What is the compounded sales growth of MRF Ltd over the last 5 years?
MRF Ltd’s compounded sales growth over the last 5 years averaged at 9%.
What is MRF Ltd’s Return on Equity (ROE) for the last year?
MRF Ltd’s Return on Equity (ROE) for the last year was 5%.
How much did MRF Ltd’s sales increase from 2019 to 2023?
MRF Ltd’s sales increased from ₹16,062 crores in 2019 to ₹23,008 crores in 2023.
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Conclusion: MRF Ltd’s Enduring Legacy and Future Prospects
In conclusion, MRF Ltd emerges as a stalwart in the tire manufacturing industry, boasting a rich legacy and a diverse portfolio that extends beyond tires to encompass sports goods, paints, coats, and entertainment products. With a commanding 29% market share in the Indian tire industry and recognition as the sixth strongest brand in the country, MRF exhibits enduring consumer trust and reputation. The company’s financial performance showcases steady sales growth, although profitability has shown volatility.
MRF’s stock has demonstrated impressive growth, with a Compound Annual Growth Rate (CAGR) of 18% over the past five years. Looking ahead, MRF continues to expand its global presence, innovate in product offerings, and invest in strategic growth initiatives. With projected share price targets indicating positive trajectories up to 2030, MRF remains poised for sustained success, underscored by its commitment to excellence, innovation, and market leadership.
What did we learn?
- 1 About MRF Ltd
- 2 Q3 Financial Highlights: MRF Ltd’s Consolidated Performance
- 3 How to Purchase MRF Ltd Shares?
- 4 MRF Ltd Share Price Target 2024 – 2030
- 5 Financial Condition of MRF Ltd: Last 5 Years
- 6 MRF Share Price Target Recommendations by Equityrush Analyst
- 7 FAQs
- 7.1 What is MRF Ltd’s current market capitalization?
- 7.2 What is MRF Ltd’s projected share price target for 2025?
- 7.3 What is MRF Ltd’s projected share price target for 2030?
- 7.4 What is MRF Ltd’s current Price-to-Earnings (P/E) ratio?
- 7.5 What is MRF Ltd’s dividend payout percentage?
- 7.6 What is the compounded sales growth of MRF Ltd over the last 5 years?
- 7.7 What is MRF Ltd’s Return on Equity (ROE) for the last year?
- 7.8 How much did MRF Ltd’s sales increase from 2019 to 2023?
- 8 Conclusion: MRF Ltd’s Enduring Legacy and Future Prospects
