- Date : 15/06/2023
- Read: 3 mins
What propelled MRF's share price to touch the 1 lakh mark? Uncover the secrets behind this remarkable triumph and witness the power of strategic investment in this article!
- MRF first Indian stock to touch ₹1 lakh/share
- Share price increased by 46.4% in 1 year
- Net profit increased by 86% YoY in Q4 FY23
- Sales and EPS grew steadily over 10 years
In a groundbreaking achievement, MRF has etched its name in history as the first Indian stock to reach the extraordinary milestone of rupees one lakh per share. Just over a year ago, the company faced a significant setback when its shares hit a 52-week low of ₹65,900.05 on BSE. However, with remarkable resilience and a stunning recovery, MRF's stock has surged an impressive 50 per cent since then, leaving market experts and investors alike in awe. Let's delve into the fascinating journey that led MRF's share price to touch the remarkable one lakh mark.
Share price in last one year
Over the past year, MRF's share price has increased by a robust 46.4%, with further gains of 10.3% in the past 6 months and 3.4% in the past month.
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Reasons for rise in MRF share price
Some prominent reasons for share price growth are mentioned below:
Highlights of March quarter are given below
In Q4 FY23, MRF's net profit increased by 86% YoY to ₹313.53 crore. Its revenue from operations also rose by 10.12% YoY to ₹5,841.7 crore. The company's EPS reached ₹803.26 during the quarter under review.
Strong fundamentals
MRF's sales and EPS have grown steadily over the past 10 years, driving its share price growth. Sales have almost doubled, while EPS has increased by 30%. The company has also maintained its operating margin at a healthy level.
Dominant player and strong market network
MRF dominates the Indian tyre market with a 30% market share in production and 22% revenue market share. Its strong distribution network of 5,000 dealers has helped establish a commanding presence in the tyre replacement market, which forms 73% of its total revenues in FY22.
Preferred brand
MRF has built a strong brand value over the years through its MRF Pace Foundation, its sponsorships of cricketing legends, and its Formula 1 car tyres. These activities have enhanced its brand image and solidified its position as a major player in the tyre industry.
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High dividend payout
MRF is a dividend paying company with a high dividend payout ratio. This has made it an attractive choice for investors.
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MRF is a well-managed company with a strong track record of growth. It has a strong brand value, dominant market share, and high dividend payout. The company is also well-positioned to benefit from the growing demand for tires in India and abroad. However, the company faces some challenges, such as rising raw material costs and increasing competition from global players.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.
