MRF Tyres: MRF, a manufacturer of tyres, made Dalal Street history on Tuesday by becoming the first Indian business to reach a share price of Rs. 1 lakh per unit. At roughly 10:45 am, MRF shares were trading for Rs 1,00,000, up 1.04 percent. In May, MRF shares had narrowly missed the mark, but experts said the firm was in a good position to reach the mark sooner or later. MRF may be the most expensive stock in India on paper, but it is not the most expensive stock according to measures like price-to-earnings ratio (P/E) or price-to-book ratio (P/BV). Over 45% growth has been seen in MRF shares over the past year. The stock has increased by roughly 14% since the start of this year. In the meantime, it has generated an 82% return over the last three years.
Impressive Financial Performance Drives MRF’s Q4FY23 Growth
In Q4FY23, the company’s net profit increased by 86% to Rs 313.5 crore from Rs 168.5 crore in the same quarter the previous year. In the quarter, its consolidated revenue from core operations increased by 10% to Rs 5,842 crore from Rs 5,305 crore in the prior year. It should be noted that MRF shares are currently selling at a price-to-book value (P/BV) multiple of 2.89 times and a price-to-earnings (P/E) multiple of 54.52 times. Its return on equity was 5.23 percent, and its return on capital employed was 7.34 percent.
Sell Ratings vs. Bullish Long-Term Potential
According to Trendlyne statistics, the MRF stock is currently nearing its lifetime highs and the majority of analysts have given the stock a sell rating. Technical analysts, on the other hand, think that the stock has greater potential. According to Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking, the MRF stock is in a “multiyear bull run” and is better suitable for investing than trading, according to Business Today. The investor should keep holding their long holdings in the stock, he continued, while those looking to accumulate might take advantage of any dips towards the Rs. 89.000–90,000. levels.
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