NSEI:MRF

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings grew by 25.8% over the past year

Risk Analysis

No risks detected for MRF from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven 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

Stable Share Price: MRF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

MRF

1.5%

IN Auto Components

1.1%

IN Market


1 Year Return

15.7%

MRF

-12.7%

IN Auto Components

-6.0%

IN Market

Return vs Industry: MRF exceeded the Indian Auto Components industry which returned -12.7% over the past year.

Return vs Market: MRF exceeded the Indian Market which returned -6% over the past year.


Shareholder returns

MRFIndustryMarket
7 Day-1.9%1.5%1.1%
30 Day3.2%7.7%6.2%
90 Day8.1%29.3%18.2%
1 Year15.8%15.7%-11.2%-12.7%-4.1%-6.0%
3 Year-6.4%-6.7%-33.4%-35.3%0.2%-4.5%
5 Year80.1%79.1%-7.9%-11.8%24.5%14.9%

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?

19.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRF (₹64867.25) is trading above our estimate of fair value (₹29178.08)

Significantly Below Fair Value: MRF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRF is poor value based on its PE Ratio (19.3x) compared to the IN Auto Components industry average (15.2x).

PE vs Market: MRF is poor value based on its PE Ratio (19.3x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: MRF is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: MRF is overvalued based on its PB Ratio (2.3x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is MRF forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRF's forecast earnings growth (5.4% per year) is below the savings rate (7.2%).

Earnings vs Market: MRF's earnings (5.4% per year) are forecast to grow slower than the Indian market (18.9% per year).

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

Revenue vs Market: MRF's revenue (6.6% per year) is forecast to grow slower than the Indian market (7.3% per year).

High Growth Revenue: MRF's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRF's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has MRF performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRF has high quality earnings.

Growing Profit Margin: MRF's current net profit margins (8.8%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: MRF's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: MRF's earnings growth over the past year (25.8%) exceeds its 5-year average (-9.2% per year).

Earnings vs Industry: MRF earnings growth over the past year (25.8%) exceeded the Auto Components industry -29.8%.


Return on Equity

High ROE: MRF's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is MRF's financial position?


Financial Position Analysis

Short Term Liabilities: MRF's short term assets (₹81.5B) exceed its short term liabilities (₹52.5B).

Long Term Liabilities: MRF's short term assets (₹81.5B) exceed its long term liabilities (₹19.8B).


Debt to Equity History and Analysis

Debt Level: MRF's debt to equity ratio (12.4%) is considered satisfactory.

Reducing Debt: MRF's debt to equity ratio has reduced from 38.4% to 12.4% over the past 5 years.

Debt Coverage: MRF's debt is well covered by operating cash flow (150.5%).

Interest Coverage: MRF's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

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

0.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRF's dividend (0.15%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: MRF's dividend (0.15%) is low compared to the top 25% of dividend payers in the Indian market (2.73%).


Stability and Growth of Payments

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

Growing Dividend: MRF 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: MRF is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

K. M. Mammen (71yo)

no data

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: K. M.'s total compensation ($USD3.66M) is above average for companies of similar size in the Indian market ($USD786.72K).

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


Leadership Team

NamePositionTenureCompensationOwnership
K. M. Mammen
Chairman & MDno data₹275.11m0.38% 1.0b
Arun Mammen
MD & Vice Chairman3.17yrs₹222.76m0.65% 1.8b
Rahul Mappillai
MD & Whole time Director9.67yrs₹193.65m0.11% 294.2m
Madhu Nainan
Vice President of Finance6.25yrs₹16.47m0.000090% 247.5k
S. Kumar
Company Secretary & Compliance Officer3.67yrs₹11.69mno data
Samir Mappillai
Whole-Time Director2.92yrs₹34.22m0.11% 289.8m
Varun Mammen
Whole-Time Director2.92yrs₹33.96m0.21% 564.4m
Raman Kumar
Vice President of Salesno data₹2.49mno data
P. Xavier
Executive Vice President of R & Dno datano datano data
P. Subbarayalu
Senior General Manager Special Projectsno data₹2.69mno data

3.7yrs

Average Tenure

70.5yo

Average Age

Experienced Management: MRF's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
K. M. Mammen
Chairman & MDno data₹275.11m0.38% 1.0b
Arun Mammen
MD & Vice Chairman3.17yrs₹222.76m0.65% 1.8b
Rahul Mappillai
MD & Whole time Director9.67yrs₹193.65m0.11% 294.2m
Samir Mappillai
Whole-Time Director2.92yrs₹34.22m0.11% 289.8m
Varun Mammen
Whole-Time Director2.92yrs₹33.96m0.21% 564.4m
Ashok Jacob
Independent Director21.75yrs₹20.00k0.044% 120.3m
Vijay Kirloskar
Independent Director19.67yrs₹20.00k0.0084% 23.0m
V. Sridhar
Non Executive Independent Director20yrs₹200.00kno data
Ranjit Jesudasen
Non Executive Independent Director17yrs₹240.00kno data
Jacob Kurian
Non-Executive Independent Director8yrs₹150.00k0.0030% 8.4m

13.3yrs

Average Tenure

66yo

Average Age

Experienced Board: MRF's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: MRF Limited
  • Ticker: MRF
  • Exchange: NSEI
  • Founded: 1946
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: ₹274.955b
  • 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 conveyor belts. The company also engages in paints and coats, toys, motorsports, and cricket training businesses. It offers tires for trucks/buses, farm services, LCVs, SCVs, three wheelers, two wheelers, passenger cars, and OTRs. In addition, the company operates MRF TireTok, MRF Tyredrome, MRF FASST, MRF Musclezone, and shops that offer computerized nitrogen inflation, tubeless repair, wheel alignment, wheel balancing and tire changing, robotic wheel alignment, vehicle safety test lane, diagnostic wheel balancing, semi-automatic tire changing, A/C recovery and recharging, electronic headlight alignment, nitrogen generation, special two-wheeler tire changing, wheels removal and refitment, and tire mounting and de-mounting services. Further, the company exports its products. The company sells its products through approximately 4,000 dealer networks. MRF Limited was founded in 1946 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:51
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.