company background image
MRF

MRF NSEI:MRF Stock Report

Last Price

₹71.22k

Market Cap

₹301.8b

7D

6.9%

1Y

-11.6%

Updated

27 Jun, 2022

Data

Company Financials +
MRF fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends2/6

MRF Stock Overview

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

MRF Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MRF
Historical stock prices
Current Share Price₹71,221.75
52 Week High₹87,550.00
52 Week Low₹63,000.00
Beta0.26
1 Month Change-4.60%
3 Month Change9.07%
1 Year Change-11.59%
3 Year Change25.48%
5 Year Change0.51%
Change since IPO2,193.78%

Recent News & Updates

May 14
The Returns On Capital At MRF (NSE:MRF) Don't Inspire Confidence

The Returns On Capital At MRF (NSE:MRF) Don't Inspire Confidence

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Mar 18
These 4 Measures Indicate That MRF (NSE:MRF) Is Using Debt Reasonably Well

These 4 Measures Indicate That MRF (NSE:MRF) Is Using Debt Reasonably Well

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

MRFIN Auto ComponentsIN Market
7D6.9%7.4%4.1%
1Y-11.6%-6.6%-0.02%

Return vs Industry: MRF underperformed the Indian Auto Components industry which returned -7.9% over the past year.

Return vs Market: MRF underperformed the Indian Market which returned -0.9% over the past year.

Price Volatility

Is MRF's price volatile compared to industry and market?
MRF volatility
MRF Average Weekly Movement3.7%
Auto Components Industry Average Movement6.2%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: MRF is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MRF's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194618,180K. M. Mammenhttps://www.mrftyres.com

MRF Limited, together with its subsidiaries, manufactures, distributes, and sells rubber products in India and internationally. The company offers rubber products, such as tyres, tubes, flaps, and tread rubber. It also engages in the paints and coats, toys, motorsports, and cricket training businesses.

MRF Fundamentals Summary

How do MRF's earnings and revenue compare to its market cap?
MRF fundamental statistics
Market Cap₹301.81b
Earnings (TTM)₹6.69b
Revenue (TTM)₹193.17b

45.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRF income statement (TTM)
Revenue₹193.17b
Cost of Revenue₹125.81b
Gross Profit₹67.36b
Other Expenses₹60.67b
Earnings₹6.69b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.58k
Gross Margin34.87%
Net Profit Margin3.46%
Debt/Equity Ratio20.1%

How did MRF perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

10%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRF?

Other financial metrics that can be useful for relative valuation.

MRF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA15x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does MRF's PE Ratio compare to its peers?

MRF PE Ratio vs Peers
The above table shows the PE ratio for MRF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.1x
502355 Balkrishna Industries
29.2x12.5%₹418.5b
APOLLOTYRE Apollo Tyres
18.7x25.8%₹119.2b
500878 CEAT
52.7x56.0%₹37.5b
530007 JK Tyre & Industries
12x37.2%₹25.1b
MRF MRF
45.1x32.9%₹301.8b

Price-To-Earnings vs Peers: MRF is expensive based on its Price-To-Earnings Ratio (45.1x) compared to the peer average (28.1x).


Price to Earnings Ratio vs Industry

How does MRF's PE Ratio compare vs other companies in the IN Auto Components Industry?

Price-To-Earnings vs Industry: MRF is expensive based on its Price-To-Earnings Ratio (45.1x) compared to the Indian Auto Components industry average (21.9x)


Price to Earnings Ratio vs Fair Ratio

What is MRF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.1x
Fair PE Ratio27.9x

Price-To-Earnings vs Fair Ratio: MRF is expensive based on its Price-To-Earnings Ratio (45.1x) compared to the estimated Fair Price-To-Earnings Ratio (27.9x).


Share Price vs Fair Value

What is the Fair Price of MRF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRF (₹71221.75) is trading above our estimate of fair value (₹45942.75)

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


Price to Earnings Growth Ratio

PEG Ratio: MRF is poor value based on its PEG Ratio (1.4x)


Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRF's forecast earnings growth (32.9% per year) is above the savings rate (6.7%).

Earnings vs Market: MRF's earnings (32.9% per year) are forecast to grow faster than the Indian market (17.4% per year).

High Growth Earnings: MRF's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRF's revenue (9% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: MRF's revenue (9% 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 (10.4%).


Discover growth companies

Past Performance

How has MRF performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MRF has a high level of non-cash earnings.

Growing Profit Margin: MRF's current net profit margins (3.5%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: MRF's earnings have declined by 4.4% per year over the past 5 years.

Accelerating Growth: MRF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRF had negative earnings growth (-47.6%) over the past year, making it difficult to compare to the Auto Components industry average (33.8%).


Return on Equity

High ROE: MRF's Return on Equity (4.8%) is considered low.


Discover strong past performing companies

Financial Health

How is MRF's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MRF's short term assets (₹101.9B) exceed its short term liabilities (₹69.6B).

Long Term Liabilities: MRF's short term assets (₹101.9B) exceed its long term liabilities (₹20.7B).


Debt to Equity History and Analysis

Debt Level: MRF's net debt to equity ratio (0.8%) is considered satisfactory.

Reducing Debt: MRF's debt to equity ratio has reduced from 27% to 20.1% over the past 5 years.

Debt Coverage: MRF's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MRF's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.21%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MRF's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: MRF's dividend (0.21%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).


Stability and Growth of Payments

Stable Dividend: MRF's dividend payments have been volatile in the past 10 years.

Growing Dividend: MRF's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.5%), MRF's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: MRF is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

5.3yrs

Average management tenure


CEO

K. M. Mammen (72 yo)

no data

Tenure

₹288,488,560

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 ($USD3.69M) is above average for companies of similar size in the Indian market ($USD642.44K).

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


Leadership Team

Experienced Management: MRF's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: MRF's board of directors are seasoned and experienced ( 12.4 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 employee growth, exchange listings and data sources


Key Information

  • Name: MRF Limited
  • Ticker: MRF
  • Exchange: NSEI
  • Founded: 1946
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Implied Market Cap: ₹301.806b
  • Shares outstanding: 4.24m
  • Website: https://www.mrftyres.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.