MRF - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.9
| Stock Code | MRF | Market Cap | 65,025 Cr. | Current Price | 1,53,320 ₹ | High / Low | 1,63,600 ₹ |
| Stock P/E | 36.2 | Book Value | 45,019 ₹ | Dividend Yield | 0.15 % | ROCE | 13.8 % |
| ROE | 10.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,53,643 ₹ | DMA 200 | 1,44,528 ₹ |
| Chg in FII Hold | -0.40 % | Chg in DII Hold | 0.72 % | PAT Qtr | 512 Cr. | PAT Prev Qtr | 484 Cr. |
| RSI | 44.8 | MACD | -818 | Volume | 4,746 | Avg Vol 1Wk | 3,206 |
| Low price | 1,00,500 ₹ | High price | 1,63,600 ₹ | PEG Ratio | 0.71 | Debt to equity | 0.11 |
| 52w Index | 83.7 % | Qtr Profit Var | 12.3 % | EPS | 4,245 ₹ | Industry PE | 31.0 |
- 📈 Revenue Growth: Quarterly PAT improved from ₹484 Cr to ₹512 Cr (+12.3%)
- 💰 Profit Margins: Moderate, ROE at 10.5% and ROCE at 13.8%
- ⚖️ Debt Ratio: Debt-to-equity at 0.11, conservative leverage
- 💵 Cash Flows: Stable, supported by strong EPS of ₹4,245
- 📊 ROE/ROCE: Reasonable but below elite benchmarks
- 📉 Valuation: P/E 36.2 vs Industry PE 31.0, slightly overvalued
- 📚 Book Value: ₹45,019, P/B ~3.4
- 📈 PEG Ratio: 0.71, fair growth at moderate valuation
- 🏢 Business Model: Leading tyre manufacturer with strong brand equity and diversified product portfolio
- 🛡️ Competitive Advantage: Premium positioning, wide distribution, and strong OEM relationships
Positive
- ✅ Strong EPS of ₹4,245
- ✅ Low debt-to-equity ratio (0.11)
- ✅ Consistent profit growth (+12.3% QoQ)
- ✅ Premium brand with global recognition
Limitation
- ⚠️ P/E ratio (36.2) above industry average (31.0)
- ⚠️ ROE and ROCE modest compared to top-tier benchmarks
- ⚠️ Dividend yield at 0.15%, limited shareholder returns
- ⚠️ FII holdings reduced by 0.40%
Company Negative News
- 📉 Slight reduction in foreign institutional investor holdings
- 📉 Margins under pressure due to raw material costs
Company Positive News
- 🌍 Expansion in premium tyre segment
- 🚗 Strong OEM partnerships with automotive leaders
- 💡 Consistent quarterly profit growth
Industry
- 💹 Industry PE at 31.0, MRF trades at a premium
- 📈 Tyre industry benefits from rising auto demand and infrastructure growth
Conclusion
MRF demonstrates solid fundamentals with strong EPS, low debt, and consistent profit growth. However, valuations are slightly stretched compared to industry peers. Entry zone is attractive near ₹1,45,000–1,50,000 (close to DMA 200 support). Long-term holding is favorable given brand strength, OEM partnerships, and steady demand in the tyre sector.
Would you like me to extend this into a peer benchmarking overlay comparing MRF against Apollo Tyres, JK Tyre, and CEAT, or should we run a sector rotation scan to identify compounding opportunities in auto ancillaries alongside tyres?
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