MRF - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | MRF | Market Cap | 56,816 Cr. | Current Price | 1,33,806 ₹ | High / Low | 1,63,600 ₹ |
| Stock P/E | 25.5 | Book Value | 45,019 ₹ | Dividend Yield | 0.18 % | ROCE | 13.8 % |
| ROE | 10.5 % | Face Value | 10.0 ₹ | DMA 50 | 1,41,960 ₹ | DMA 200 | 1,43,696 ₹ |
| Chg in FII Hold | -0.09 % | Chg in DII Hold | 0.12 % | PAT Qtr | 736 Cr. | PAT Prev Qtr | 512 Cr. |
| RSI | 40.4 | MACD | -2,787 | Volume | 5,710 | Avg Vol 1Wk | 6,190 |
| Low price | 1,07,389 ₹ | High price | 1,63,600 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.11 |
| 52w Index | 47.0 % | Qtr Profit Var | 140 % | EPS | 5,123 ₹ | Industry PE | 24.8 |
📊 Chart & Trend: MRF trades at ₹1,33,806, below both its 50 DMA (₹1,41,960) and 200 DMA (₹1,43,696). This indicates short-term and medium-term weakness, with the stock struggling to regain momentum after recent declines.
📉 Momentum Indicators: RSI at 40.4 shows the stock is approaching oversold territory, suggesting possible support but no strong reversal yet. MACD at -2,787 confirms bearish momentum. Bollinger Bands suggest price is near the lower band, with support around ₹1,30,000–₹1,32,000.
📈 Volume Trends: Current volume (5,710) is slightly below the 1-week average (6,190), reflecting reduced participation and lack of strong buying interest.
🔑 Entry Zone: ₹1,30,000–₹1,32,000 (near support and oversold RSI levels).
🚪 Exit Zone: ₹1,42,000–₹1,44,000 (near resistance and 200 DMA).
📌 Trend Status: The stock is in consolidation with bearish bias, showing weakness across moving averages but potential support emerging near ₹1,30,000.
Positive
- Quarterly PAT surged (₹512 Cr → ₹736 Cr).
- EPS at ₹5,123 indicates strong earnings power.
- ROCE (13.8%) and ROE (10.5%) show decent efficiency.
- PEG ratio at 0.50 suggests reasonable valuation relative to growth.
- DII holdings increased (+0.12%), reflecting domestic institutional support.
Limitation
- Stock trading below both 50 DMA and 200 DMA, signaling weakness.
- Dividend yield at 0.18% is modest compared to peers.
- 52-week index at 47% shows moderate underperformance.
Company Negative News
- FII holdings decreased (-0.09%), showing reduced foreign investor interest.
- Stock continues to trade below key moving averages.
Company Positive News
- Sequential PAT growth highlights strong profitability momentum.
- DII stake increased, supporting long-term confidence.
Industry
- Tyre sector PE at 24.8, close to MRF’s valuation of 25.5.
- Sector rotation remains cautious, with cyclical demand linked to auto industry trends.
Conclusion
⚖️ MRF is consolidating with bearish short-term signals, trading below key averages. Entry near ₹1,30,000–₹1,32,000 offers margin of safety, while exits around ₹1,42,000–₹1,44,000 provide profit-taking opportunities. Despite weak technicals, strong profitability, efficiency, and reasonable PEG ratio support long-term resilience, though institutional selling adds caution.
Would you like me to extend this into a peer benchmarking overlay with Apollo Tyres, JK Tyre, and CEAT to compare MRF’s valuation and technical strength within the tyre sector?