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MRF

NSEI:MRF
Snowflake Description

Flawless balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRF
NSEI
₹236B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

MRF Limited, together with its subsidiaries, manufactures, distributes, and sells rubber products in India and internationally. The last earnings update was 55 days ago. More info.


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MRF Share Price and Events
7 Day Returns
2.9%
NSEI:MRF
0.3%
IN Auto Components
1%
IN Market
1 Year Returns
-24.2%
NSEI:MRF
-22.3%
IN Auto Components
1%
IN Market
MRF Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MRF (MRF) 2.9% -1.4% -0.4% -24.2% 67.4% 135%
IN Auto Components 0.3% -4.9% -10.5% -22.3% 12.1% 53.4%
IN Market 1% -2.1% -0.7% 1% 30.4% 35.1%
1 Year Return vs Industry and Market
  • MRF underperformed the Auto Components industry which returned -22.3% over the past year.
  • MRF underperformed the Market in India which returned 1% over the past year.
Price Volatility
MRF
Industry
5yr Volatility vs Market

MRF Value

 Is MRF undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MRF to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MRF.

NSEI:MRF Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17.7%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:MRF
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.205 (1 + (1- 35%) (8.93%))
1.184
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.184 * 8.6%)
17.73%

Discounted Cash Flow Calculation for NSEI:MRF using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MRF is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:MRF DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.73%)
2019 1,512.00 Analyst x2 1,284.27
2020 13,128.00 Analyst x1 9,471.32
2021 15,269.33 Analyst x3 9,357.03
2022 17,228.22 Est @ 12.83% 8,967.35
2023 19,165.56 Est @ 11.25% 8,473.28
2024 21,108.31 Est @ 10.14% 7,926.65
2025 23,084.18 Est @ 9.36% 7,363.03
2026 25,119.62 Est @ 8.82% 6,805.52
2027 27,239.02 Est @ 8.44% 6,268.24
2028 29,464.73 Est @ 8.17% 5,759.21
Present value of next 10 years cash flows ₹71,675.90
NSEI:MRF DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹29,464.73 × (1 + 7.55%) ÷ (17.73% – 7.55%)
₹311,233.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹311,233.22 ÷ (1 + 17.73%)10
₹60,833.95
NSEI:MRF Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹71,675.90 + ₹60,833.95
₹132,509.85
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹132,509.85 / 4.24
₹31243.9
NSEI:MRF Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹31,251.09
Current discount Discount to share price of ₹56,094.75
= -1 x (₹56,094.75 - ₹31,251.09) / ₹31,251.09
-79.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of MRF is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MRF's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MRF's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:MRF PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹2,665.82
BSE:500290 Share Price ** BSE (2019-06-26) in INR ₹56081.8
India Auto Components Industry PE Ratio Median Figure of 102 Publicly-Listed Auto Components Companies 14.97x
India Market PE Ratio Median Figure of 2,825 Publicly-Listed Companies 15.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MRF.

NSEI:MRF PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500290 Share Price ÷ EPS (both in INR)

= 56081.8 ÷ 2,665.82

21.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MRF is overvalued based on earnings compared to the IN Auto Components industry average.
  • MRF is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does MRF's expected growth come at a high price?
Raw Data
NSEI:MRF PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
14%per year
India Auto Components Industry PEG Ratio Median Figure of 32 Publicly-Listed Auto Components Companies 1.24x
India Market PEG Ratio Median Figure of 523 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

NSEI:MRF PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.04x ÷ 14%

1.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MRF is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MRF's assets?
Raw Data
NSEI:MRF PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹25,552.95
BSE:500290 Share Price * BSE (2019-06-26) in INR ₹56081.8
India Auto Components Industry PB Ratio Median Figure of 112 Publicly-Listed Auto Components Companies 1.63x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 0.96x
NSEI:MRF PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500290 Share Price ÷ Book Value per Share (both in INR)

= 56081.8 ÷ 25,552.95

2.19x

* Primary Listing of MRF.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MRF is overvalued based on assets compared to the IN Auto Components industry average.
X
Value checks
We assess MRF's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. MRF has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MRF Future Performance

 How is MRF expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MRF expected to grow at an attractive rate?
  • MRF's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • MRF's earnings growth is positive but not above the India market average.
  • MRF's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:MRF Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MRF Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 14%
NSEI:MRF Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 9%
India Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 13.9%
India Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 9.2%
India Market Earnings Growth Rate Market Cap Weighted Average 16.7%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:MRF Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MRF Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 192,329 24,376 14,969 4
2020-03-31 173,618 22,889 13,038 3
NSEI:MRF Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 160,625 11,306
2018-03-31 150,004 24,255 11,316
2017-03-31 134,122 19,557 14,862

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MRF's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
  • MRF's revenue is expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MRF Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from MRF Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MRF Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 3,529.87 3,676.60 3,233.98 4.00
2020-03-31 3,074.79 3,184.00 2,994.56 3.00
NSEI:MRF Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 2,665.82
2018-03-31 2,668.17
2017-03-31 3,504.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MRF is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MRF's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MRF has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MRF Past Performance

  How has MRF performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MRF's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MRF's year on year earnings growth rate has been positive over the past 5 years.
  • MRF's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • MRF's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.
Earnings and Revenue History
MRF's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MRF Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MRF Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 160,624.60 11,306.10 11,652.80
2018-03-31 150,004.00 11,316.10 14,279.40
2017-03-31 134,122.30 14,862.20 13,233.90
2016-03-31 134,535.00 16,729.48 11,518.14
2014-09-30 133,303.90 9,083.20 9,337.40
2013-09-30 122,482.20 8,086.00 13,706.70
2012-09-30 119,803.00 5,794.00 11,846.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MRF has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MRF used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
  • MRF's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MRF's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MRF has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MRF Health

 How is MRF's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MRF's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MRF is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • MRF's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of MRF's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MRF Company Filings, last reported 2 months ago.

NSEI:MRF Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 108,374.70 21,023.90 29,162.00
2018-03-31 97,383.10 21,636.30 33,074.10
2017-03-31 86,408.80 23,328.40 26,653.20
2016-03-31 72,244.60 24,639.00 22,387.70
2014-09-30 45,396.60 19,027.70 16,726.20
2013-09-30 36,555.40 15,989.60 11,648.20
2012-09-30 28,611.70 17,078.00 4,225.70
  • MRF's level of debt (19.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42.7% vs 19.4% today).
  • Debt is well covered by operating cash flow (115.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess MRF's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MRF has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MRF Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.11%
Current annual income from MRF dividends. Estimated to be 0.49% next year.
If you bought ₹2,000 of MRF shares you are expected to receive ₹2 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MRF's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.55%).
  • MRF's dividend is below the markets top 25% of dividend payers in India (2.08%).
Upcoming dividend payment

Purchase MRF before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:MRF Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
India Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 81 Stocks 1%
India Market Average Dividend Yield Market Cap Weighted Average of 1447 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:MRF Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 261.65 2.00
2020-03-31 299.46 1.00
NSEI:MRF Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-02 60.000 0.109
2019-02-07 60.000 0.106
2018-11-09 60.000 0.091
2018-05-03 60.000 0.084
2018-02-01 60.000 0.082
2017-11-10 60.000 0.086
2017-05-04 60.000 0.090
2017-02-03 100.000 0.177
2016-10-27 100.000 0.198
2016-05-03 100.000 0.271
2015-10-29 50.000 0.137
2015-07-27 50.000 0.121
2015-01-21 50.000 0.134
2014-11-26 50.000 0.134
2014-10-30 30.000 0.093
2014-07-23 30.000 0.109
2014-01-14 30.000 0.140
2013-11-28 30.000 0.159
2013-10-24 25.000 0.152
2013-07-25 25.000 0.184
2013-02-25 25.000 0.189
2012-10-25 25.000 0.210
2012-07-25 25.000 0.243
2011-11-29 25.000 0.274
2011-10-20 25.000 0.376
2010-11-25 25.000 0.369
2010-07-28 25.000 0.294
2009-11-03 25.000 0.379
2008-12-01 20.000 0.782
2008-10-15 20.000 1.008
2008-07-24 20.000 0.618

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MRF is not paying a notable dividend for India, therefore no need to check if the payments are stable.
  • MRF is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of MRF's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of MRF's dividends as it is not paying a notable one for India.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (13.5x coverage).
X
Income/ dividend checks
We assess MRF's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MRF afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MRF has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MRF Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rahul Mappillai
COMPENSATION ₹182,424,593
TENURE AS CEO 2.1 years
CEO Bio

Mr. Rahul Mammen Mappillai has been Managing Director at MRF Ltd. since May 04, 2017 and served as Vice President of Planning & Development since April 1, 2008. Mr. Mappillai has been the Whole-time Director at MRF Ltd. since November 25, 2010. Mr. Mappillai completed B.A. (Hons) Economics from St. Stephens College, Delhi. After his graduation, completed his M. A. in Economics from the University of Madras and subsequently did his Masters in Business Administration (MBA) at the University of Michigan Business School, Ann Arbor, USA.

CEO Compensation
  • Rahul's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Rahul's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the MRF management team in years:

2.3
Average Tenure
68.5
Average Age
  • The tenure for the MRF management team is about average.
Management Team

K. M. Mammen

TITLE
Chairman & MD
COMPENSATION
₹262M
AGE
69

Rahul Mappillai

TITLE
MD & Whole time Director
COMPENSATION
₹182M
TENURE
2.1 yrs

Arun Mammen

TITLE
MD & Vice Chairman
COMPENSATION
₹211M
AGE
52
TENURE
2.1 yrs

Madhu Nainan

TITLE
Vice President of Finance
COMPENSATION
₹15M
AGE
50
TENURE
5.2 yrs

Samir Mappillai

TITLE
Whole-Time Director
COMPENSATION
₹23M

Varun Mammen

TITLE
Whole-Time Director
COMPENSATION
₹23M

S. Kumar

TITLE
Company Secretary & Compliance Officer
TENURE
2.6 yrs

Raman Kumar

TITLE
Vice President of Sales
COMPENSATION
₹2M
AGE
69

P. Xavier

TITLE
Executive Vice President of R & D
AGE
68

P. Subbarayalu

TITLE
Senior General Manager Special Projects
COMPENSATION
₹3M
AGE
77
Board of Directors Tenure

Average tenure and age of the MRF board of directors in years:

12.3
Average Tenure
62.5
Average Age
  • The average tenure for the MRF board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

K. M. Mammen

TITLE
Chairman & MD
COMPENSATION
₹262M
AGE
69
TENURE
16.4 yrs

Rahul Mappillai

TITLE
MD & Whole time Director
COMPENSATION
₹182M
TENURE
8.6 yrs

Arun Mammen

TITLE
MD & Vice Chairman
COMPENSATION
₹211M
AGE
52
TENURE
2.1 yrs

Samir Mappillai

TITLE
Whole-Time Director
COMPENSATION
₹23M
TENURE
1.8 yrs

Varun Mammen

TITLE
Whole-Time Director
COMPENSATION
₹23M
TENURE
1.8 yrs

V. Sridhar

TITLE
Independent Director
COMPENSATION
₹190K
TENURE
18.9 yrs

Ranjit Jesudasen

TITLE
Non Executive Independent Director
COMPENSATION
₹220K
TENURE
15.9 yrs

Jacob Kurian

TITLE
Independent Director
COMPENSATION
₹180K
TENURE
6.9 yrs

Narayanan Kumar

TITLE
Independent Director
COMPENSATION
₹40K
AGE
68
TENURE
15.9 yrs

Ashok Jacob

TITLE
Independent Director
COMPENSATION
₹20K
AGE
57
TENURE
20.7 yrs
Who owns this company?
Recent Insider Trading
  • MRF individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
04. Jun 19 Sell Susan Kurian Individual 03. Jun 19 03. Jun 19 -100 ₹55,814.00 ₹-5,581,400
23. May 19 Sell Susan Kurian Individual 20. May 19 21. May 19 -200 ₹54,550.00 ₹-10,910,000
02. Apr 19 Sell Susan Kurian Individual 01. Apr 19 01. Apr 19 -200 ₹59,000.00 ₹-11,800,000
01. Apr 19 Buy Braga Industries LLP Company 29. Mar 19 29. Mar 19 500 ₹57,994.55 ₹28,997,275
26. Mar 19 Buy JCee Manufacturing and Services Private Limited Company 22. Mar 19 22. Mar 19 232 ₹57,036.63 ₹13,232,499
22. Mar 19 Buy Braga Industries LLP Company 20. Mar 19 20. Mar 19 800 ₹56,965.40 ₹45,572,321
22. Mar 19 Buy JCee Manufacturing and Services Private Limited Company 20. Mar 19 20. Mar 19 118 ₹56,996.15 ₹6,725,545
13. Mar 19 Sell Susan Kurian Individual 11. Mar 19 11. Mar 19 -100 ₹57,716.60 ₹-5,771,660
27. Feb 19 Sell Susan Kurian Individual 25. Feb 19 25. Feb 19 -100 ₹55,100.00 ₹-5,510,000
18. Feb 19 Buy Braga Industries LLP Company 13. Feb 19 13. Feb 19 1,800 ₹55,657.99 ₹100,184,380
18. Feb 19 Buy JCee Manufacturing and Services Private Limited Company 13. Feb 19 13. Feb 19 200 ₹55,599.23 ₹11,119,846
18. Feb 19 Buy Peninsular Investments Pvt Ltd. Company 13. Feb 19 13. Feb 19 100 ₹55,593.44 ₹5,559,344
14. Feb 19 Sell Susan Kurian Individual 12. Feb 19 12. Feb 19 -100 ₹55,039.20 ₹-5,503,920
13. Feb 19 Sell Shirin Mammen Individual 11. Feb 19 11. Feb 19 -450 ₹55,478.55 ₹-24,965,347
07. Feb 19 Sell Susan Kurian Individual 05. Feb 19 05. Feb 19 -100 ₹60,342.88 ₹-6,034,288
02. Jan 19 Buy Braga Industries LLP Company 31. Dec 18 31. Dec 18 1,000 ₹66,997.65 ₹66,996,671
02. Jan 19 Buy JCee Manufacturing and Services Private Limited Company 31. Dec 18 31. Dec 18 175 ₹66,992.15 ₹11,723,627
28. Dec 18 Buy JCee Manufacturing and Services Private Limited Company 26. Dec 18 26. Dec 18 59 ₹65,937.29 ₹3,890,300
21. Dec 18 Sell Sarasu Jacob Individual 19. Dec 18 19. Dec 18 -65 ₹68,160.37 ₹-4,430,424
13. Dec 18 Buy Braga Industries LLP Company 10. Dec 18 10. Dec 18 356 ₹64,628.94 ₹23,007,902
11. Dec 18 Buy Braga Industries LLP Company 07. Dec 18 07. Dec 18 644 ₹65,317.98 ₹42,053,926
21. Sep 18 Buy Braga Industries LLP Company 19. Sep 18 19. Sep 18 800 ₹68,225.28 ₹54,580,224
12. Sep 18 Buy Braga Industries LLP Company 10. Sep 18 11. Sep 18 600 ₹70,623.04 ₹42,355,597
12. Sep 18 Buy Comprehensive Investment & Finance Company Pvt Ltd Company 11. Sep 18 11. Sep 18 20 ₹69,950.00 ₹1,399,000
11. Sep 18 Buy JCee Manufacturing and Services Private Limited Company 06. Sep 18 06. Sep 18 220 ₹70,682.31 ₹15,550,108
11. Sep 18 Buy Peninsular Investments Pvt Ltd. Company 06. Sep 18 06. Sep 18 50 ₹70,199.90 ₹3,509,995
11. Sep 18 Buy Comprehensive Investment & Finance Company Pvt Ltd Company 06. Sep 18 06. Sep 18 230 ₹70,887.71 ₹16,304,173
X
Management checks
We assess MRF's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MRF has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MRF News

Simply Wall St News

Taking A Look At MRF Limited's (NSE:MRF) ROE

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows MRF has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Percentage Of MRF Limited (NSE:MRF) Shares Do Insiders Own?

Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that. … institutions own shares in the company

Simply Wall St -

What Should You Know About MRF Limited's (NSE:MRF) Growth?

In March 2018, MRF Limited (NSE:MRF) released its earnings update. … as a 40.2% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 13.6%

Simply Wall St -

Has MRF Limited (NSE:MRF) Improved Earnings In Recent Times?

In this article, I will take a look at MRF Limited's (NSE:MRF) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, along with how the rest of MRF's industry performed. … How Did MRF's Recent Performance Stack Up Against Its Past. … MRF's trailing twelve-month earnings (from 31 March 2018) of ₹11.32b has

Simply Wall St -

Why MRF Limited (NSE:MRF) Is A Buy When Markets Go Down

When stock prices are falling, the best mindset to have is a long term one. … High quality stocks such as MRF Limited has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record.

Simply Wall St -

Is MRF Limited (NSE:MRF) A Financially Strong Company?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as MRF Limited (NSE:MRF), with a market cap of ₹325.09b, often get neglected by retail investors. … Today we will look at MRF’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of MRF's financial health, so you should conduct further analysis.

Simply Wall St -

Why MRF Limited (NSE:MRF) Delivered An Inferior ROE Compared To The Industry

and want to learn about Return on Equity using a real-life example. … MRF Limited (NSE:MRF) delivered an ROE of 11.62% over the past 12 months, which is relatively in-line with its industry average of 14.22% during the same period. … Today I will look at how components such as financial leverage can influence ROE which may impact the sustainability of MRF's returns.

Simply Wall St -

Intrinsic Calculation For MRF Limited (NSE:MRF) Shows Investors Are Overpaying

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is It Time To Sell MRF Limited (NSE:MRF) Based Off Its PE Ratio?

and want to better understand how you can grow your money by investing in MRF Limited (NSE:MRF). … MRF Limited (NSE:MRF) is trading with a trailing P/E of 28.1x, which is higher than the industry average of 24.6x. … While this makes MRF appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Why MRF Limited (NSE:MRF) Is An Attractive Stock On Right Now

I've been keeping an eye on MRF Limited (NSE:MRF) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe MRF has a lot to offer. … In the following section, I expand a bit more on these key aspects.

Simply Wall St -

MRF Company Info

Description

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 tires and tubes, commercial vehicle servicing, robotic wheel alignment, diagnostic wheel balancing, tire changing, nitrogen filling, and A/C recovery and recharging services. Further, MRF Limited exports its products to approximately 65 countries. The company sells its products through approximately 4,000 dealer networks. MRF Limited was founded in 1946 and is based in Chennai, India.

Details
Name: MRF Limited
MRF
Exchange: NSEI
Founded: 1946
₹235,539,510,562
4,241,143
Website: http://www.mrftyres.com
Address: MRF Limited
No. 114, Greams Road,
Chennai,
Tamil Nadu, 600006,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500290 Equity Shares Mumbai Stock Exchange IN INR 18. Sep 1996
NSEI MRF Equity Shares National Stock Exchange of India IN INR 18. Sep 1996
Number of employees
Current staff
Staff numbers
0
MRF employees.
Industry
Tires and Rubber
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 12:51
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.