MRF - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.5

Let’s break down MRF’s financial and strategic landscape

📊 Core Financials

Profit Growth: PAT up from ₹315 Cr. to ₹512 Cr. with a quarterly profit variance of 29.3% — a solid growth trend.

ROE (10.6%) & ROCE (13.6%): Reasonable but not extraordinary — consistent with capital-intensive operations like tire manufacturing.

EPS at ₹4,408: Exceptionally strong, reinforcing the high share price.

Debt-to-Equity at 0.20: Indicates conservative leverage with good financial discipline.

💰 Valuation Snapshot

Metric Value Commentary

P/E 33.9 Fairly valued vs industry; aligns with growth expectations

PEG Ratio 0.68 Suggests undervaluation relative to earnings growth

P/B Ratio ~3.42 Acceptable considering its industry and performance

Dividend Yield 0.16% Low, but consistent with a growth-oriented business

🏭 Business Model & Competitive Edge

MRF dominates the Indian tire industry, serving both OEMs and replacement markets.

Diversified product lineup (passenger, commercial, industrial tires) adds resilience.

High brand equity and strong dealer network provide a moat against competitors.

Cost pressures from raw material volatility are key risks but seem well-managed.

📉 Technical Snapshot

RSI: 57.6 — Neutral, implies neither overbought nor oversold conditions.

MACD Positive — Bullish momentum in play.

Current Price vs DMA: Trading above both 50-DMA (₹1,42,699) and 200-DMA (₹1,31,278), showing strength and trend continuation.

🛒 Entry Zone & Long-Term View

Suggested Entry Zone: ₹1,42,000–₹1,45,000 range — closer to 50-DMA with support levels intact.

Long-Term Holding: Excellent candidate due to strong fundamentals, market leadership, prudent financial management, and promising growth prospects. Suitable for long-term portfolios focused on stability and compounding.

Would you like a peer comparison with Apollo Tyres, Balkrishna Industries, or Ceat to see how MRF stacks up across the segment?

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