BSE:500290

Stock Analysis Report

Executive Summary

MRF Limited, together with its subsidiaries, manufactures, distributes, and sells rubber products in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has MRF's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

500290

5.9%

IN Auto Components

3.9%

IN Market


1 Year Return

3.4%

500290

-22.7%

IN Auto Components

6.0%

IN Market

Return vs Industry: 500290 exceeded the Indian Auto Components industry which returned -22.7% over the past year.

Return vs Market: 500290 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

500290IndustryMarket
7 Day3.7%5.9%3.9%
30 Day-0.9%7.0%7.8%
90 Day18.3%0.6%2.5%
1 Year3.5%3.4%-21.9%-22.7%8.2%6.0%
3 Year27.2%26.8%-10.5%-12.7%23.0%16.7%
5 Year108.7%107.2%28.4%23.6%43.5%30.0%

Price Volatility Vs. Market

How volatile is MRF's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MRF undervalued compared to its fair value and its price relative to the market?

23.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500290 (₹63996) is trading above our estimate of fair value (₹14915.65)

Significantly Undervalued: 500290 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500290 is poor value based on its PE Ratio (23.9x) compared to the Auto Components industry average (12.9x).

PE vs Market: 500290 is poor value based on its PE Ratio (23.9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500290 is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: 500290 is overvalued based on its PB Ratio (2.5x) compared to the IN Auto Components industry average (1.3x).


Next Steps

Future Growth

How is MRF forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500290's forecast earnings growth (16.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 500290's earnings (16.3% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: 500290's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500290's revenue (6% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 500290's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 500290's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MRF performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500290's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: 500290's earnings growth over the past year (0.4%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: 500290 earnings growth over the past year (0.4%) exceeded the Auto Components industry -4.6%.


Return on Equity

High ROE: 500290's Return on Equity (10.5%) is considered low.


Return on Assets

ROA vs Industry: 500290's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: 500290's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MRF's financial position?


Financial Position Analysis

Short Term Liabilities: 500290's short term assets (₹84.6B) exceeds its short term liabilities (₹54.6B)

Long Term Liabilities: 500290's short term assets (84.6B) exceeds its long term liabilities (21.4B)


Debt to Equity History and Analysis

Debt Level: 500290's debt to equity ratio (23.1%) is considered satisfactory

Reducing Debt: 500290's debt to equity ratio has reduced from 42.3% to 23.1% over the past 5 years.

Debt Coverage: 500290's debt is well covered by operating cash flow (50%).

Interest Coverage: 500290's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: 500290 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500290's debt is covered by short term assets (assets are 3.376990x debt).


Next Steps

Dividend

What is MRF's current dividend yield, its reliability and sustainability?

0.093%

Current Dividend Yield


Dividend Yield vs Market

company0.09%marketbottom25%0.6%markettop25%2.4%industryaverage1.0%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500290's dividend (0.093%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500290's dividend (0.093%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: 500290 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 500290 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 500290 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500290's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of MRF's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

K. M. Mammen (70yo)

0yrs

Tenure

₹275,113,774

Compensation

Mr. K. M. Vinoo Mammen, B.A., has been the Chairman and a Managing Director of MRF Ltd. since 2003 and 1986 respectively. Mr. Mammen served as a the Vice Chairman of MRF Ltd. since 1986. Mr. Mammen has bee ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether K. M.'s total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: K. M.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.9yrs

Average Tenure

69.5yo

Average Age

Experienced Management: 500290's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

12.6yrs

Average Tenure

65yo

Average Age

Experienced Board: 500290's board of directors are seasoned and experienced ( 12.6 years average tenure).


Insider Trading

Insider Buying: 500290 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,180,00010 Sep 19
Philip Eapen
EntityIndividual
Shares20
Max Price₹59,000.00
Sell₹1,172,70030 Aug 19
Philip Eapen
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JCee Manufacturing and Services Private Limited
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Braga Industries LLP
EntityCompany
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Sarasu Jacob
EntityIndividual
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Sell₹13,804,34926 Jun 19
Susan Kurian
EntityIndividual
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Max Price₹56,100.00
Sell₹3,466,16724 Jun 19
Susan Kurian
EntityIndividual
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Max Price₹55,083.09
Sell₹5,581,40004 Jun 19
Susan Kurian
EntityIndividual
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Max Price₹55,814.00
Sell₹10,910,00023 May 19
Susan Kurian
EntityIndividual
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Max Price₹54,550.00
Sell₹11,800,00002 Apr 19
Susan Kurian
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Max Price₹59,000.00
Buy₹28,997,27501 Apr 19
Braga Industries LLP
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JCee Manufacturing and Services Private Limited
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Braga Industries LLP
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Susan Kurian
EntityIndividual
Shares100
Max Price₹57,716.60
Sell₹5,510,00027 Feb 19
Susan Kurian
EntityIndividual
Shares100
Max Price₹55,100.00
Buy₹5,559,34418 Feb 19
Peninsular Investments Pvt Ltd.
EntityCompany
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Braga Industries LLP
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JCee Manufacturing and Services Private Limited
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Sell₹5,503,92014 Feb 19
Susan Kurian
EntityIndividual
Shares100
Max Price₹55,039.20
Sell₹24,965,34713 Feb 19
Shirin Mammen
EntityIndividual
Shares450
Max Price₹55,478.55
Sell₹6,034,28807 Feb 19
Susan Kurian
EntityIndividual
Shares100
Max Price₹60,342.88
Buy₹66,996,67102 Jan 19
Braga Industries LLP
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Max Price₹66,997.65
Buy₹11,723,62702 Jan 19
JCee Manufacturing and Services Private Limited
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Buy₹3,890,30028 Dec 18
JCee Manufacturing and Services Private Limited
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Sarasu Jacob
EntityIndividual
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Braga Industries LLP
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Max Price₹64,628.94
Buy₹42,053,92611 Dec 18
Braga Industries LLP
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Shares644
Max Price₹65,317.98

Ownership Breakdown


Management Team

  • P. Subbarayalu (78yo)

    Senior General Manager Special Projects

    • Tenure: 0yrs
    • Compensation: ₹2.69m
  • Arun Mammen (53yo)

    MD & Vice Chairman

    • Tenure: 2.4yrs
    • Compensation: ₹222.76m
  • Raman Kumar (70yo)

    Vice President of Sales

    • Tenure: 0yrs
    • Compensation: ₹2.49m
  • Rahul Mappillai

    MD & Whole time Director

    • Tenure: 8.9yrs
    • Compensation: ₹193.65m
  • P. Xavier (69yo)

    Executive Vice President of R & D

    • Tenure: 0yrs
  • K. M. Mammen (70yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹275.11m
  • Madhu Nainan (51yo)

    Vice President of Finance

    • Tenure: 5.5yrs
    • Compensation: ₹16.47m
  • Varun Mammen

    Whole-Time Director

    • Tenure: 2.2yrs
    • Compensation: ₹33.96m
  • Samir Mappillai

    Whole-Time Director

    • Tenure: 2.2yrs
    • Compensation: ₹34.22m
  • S. Kumar

    Company Secretary & Compliance Officer

    • Tenure: 2.9yrs
    • Compensation: ₹11.69m

Board Members

  • Ashok Jacob (58yo)

    Independent Director

    • Tenure: 21yrs
    • Compensation: ₹20.00k
  • Vijay Kirloskar (68yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: ₹20.00k
  • V. Sridhar (66yo)

    Non Executive Independent Director

    • Tenure: 19.3yrs
    • Compensation: ₹200.00k
  • Arun Mammen (53yo)

    MD & Vice Chairman

    • Tenure: 2.4yrs
    • Compensation: ₹222.76m
  • Ranjit Jesudasen (65yo)

    Non Executive Independent Director

    • Tenure: 16.3yrs
    • Compensation: ₹240.00k
  • Rahul Mappillai

    MD & Whole time Director

    • Tenure: 8.9yrs
    • Compensation: ₹193.65m
  • K. M. Mammen (70yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹275.11m
  • Jacob Kurian (61yo)

    Non-Executive Independent Director

    • Tenure: 7.3yrs
    • Compensation: ₹150.00k
  • Varun Mammen

    Whole-Time Director

    • Tenure: 2.2yrs
    • Compensation: ₹33.96m
  • Samir Mappillai

    Whole-Time Director

    • Tenure: 2.2yrs
    • Compensation: ₹34.22m

Company Information

MRF Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MRF Limited
  • Ticker: 500290
  • Exchange: BSE
  • Founded: 1946
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: ₹271.416b
  • Shares outstanding: 4.24m
  • Website: https://www.mrftyres.com

Location

  • MRF Limited
  • No. 114, Greams Road
  • Chennai
  • Tamil Nadu
  • 600006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500290BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1996
MRFNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1996

Biography

MRF Limited, together with its subsidiaries, manufactures, distributes, and sells rubber products in India and internationally. It offers rubber products, such as tires, tubes, flaps, tread rubber, and con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.