MRF Limited (NSE:MRF) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, MRF Limited (NSE:MRF) recently reported its third-quarter numbers. Revenues came in 3.8% below expectations, at ₹62b. Statutory earnings per share were relatively better off, with a per-share profit of ₹1,813 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for MRF

After the latest results, the six analysts covering MRF are now predicting revenues of ₹269.8b in 2025. If met, this would reflect a decent 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 11% to ₹5,318. In the lead-up to this report, the analysts had been modelling revenues of ₹266.7b and earnings per share (EPS) of ₹5,151 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to ₹112,217. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic MRF analyst has a price target of ₹149,209 per share, while the most pessimistic values it at ₹90,000. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that MRF's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that MRF is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MRF following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that MRF's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MRF going out to 2026, and you can see them free on our platform here..

You can also view our analysis of MRF's balance sheet, and whether we think MRF is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.