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Last Updated on: 13 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

MRF Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 7:27 pm

Market Cap 50,606 Cr.
Current Price 1,19,354
High / Low1,51,445/1,07,033
Stock P/E26.0
Book Value 41,659
Dividend Yield0.17 %
ROCE16.1 %
ROE12.6 %
Face Value 10.0
PEG Ratio0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for MRF Ltd

Competitors of MRF Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodyear India Ltd 2,391 Cr. 1,0361,440/1,00440.9 2551.45 %22.0 %16.0 % 10.0
TVS Srichakra Ltd 2,896 Cr. 3,7815,097/3,52529.3 1,4521.25 %11.1 %10.6 % 10.0
MRF Ltd 50,606 Cr. 1,19,3541,51,445/1,07,03326.0 41,6590.17 %16.1 %12.6 % 10.0
JK Tyre & Industries Ltd 10,343 Cr. 377554/33213.5 1721.19 %19.3 %20.6 % 2.00
Innovative Tyres & Tubes Ltd 10.2 Cr. 5.6510.2/4.50 0.130.00 %26.6 %% 10.0
Industry Average23,296.14 Cr16,338.8325.845,660.140.87%18.69%15.53%6.88

All Competitor Stocks of MRF Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4,6424,8164,1844,9084,9205,3055,6965,8265,6455,8426,4406,2176,162
Expenses3,6654,0503,6884,3874,4274,7655,2035,3465,0834,9885,3105,0605,108
Operating Profit9777664965214935404934815628541,1301,1571,055
OPM %21%16%12%11%10%10%9%8%10%15%18%19%17%
Other Income64589389706634777170757178
Interest66776458646766758692848690
Depreciation284298302297296311298309316330333351360
Profit before tax690449222255202228164174231501787791682
Tax %25%26%26%26%26%28%25%25%24%32%25%26%25%
Net Profit521332166189149165124130175341589587510
EPS in Rs1,227.37783.17390.42445.78352.24389.52291.43306.19412.23803.241,388.201,383.271,201.83

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9,75211,96412,24813,32920,17913,41214,95416,06216,23716,16219,31723,00824,144
Expenses8,94210,69210,46811,38415,74310,76312,66513,74413,85513,20817,25620,60420,442
Operating Profit8101,2721,7801,9454,4372,6492,2882,3172,3822,9542,0612,4043,702
OPM %8%11%15%15%22%20%15%14%15%18%11%10%15%
Other Income429322563317327330416335205315245287
Interest98159196232361257259273301282263326348
Depreciation2483023744247376117078089821,1411,2051,2531,330
Profit before tax8938431,2351,3533,6562,1091,6531,6521,4341,7379081,0702,310
Tax %31%31%35%33%31%30%32%32%1%26%26%28%
Net Profit6195798099082,5091,4861,1321,1311,4231,2776697691,691
EPS in Rs1,458.981,366.161,906.582,141.715,916.933,504.332,668.202,665.823,354.223,011.151,577.961,813.093,986.94
Dividend Payout %2%2%2%2%2%2%2%2%3%5%10%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-40.77%-23.82%-0.09%25.82%-10.26%-47.61%14.95%
Change in YoY Net Profit Growth (%)0.00%16.95%23.73%25.91%-36.08%-37.35%62.56%

MRF Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:9%
3 Years:16%
TTM:10%
Compounded Profit Growth
10 Years:9%
5 Years:12%
3 Years:15%
TTM:15%
Stock Price CAGR
10 Years:14%
5 Years:14%
3 Years:16%
1 Year:12%
Return on Equity
10 Years:12%
5 Years:9%
3 Years:7%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444444444444
Reserves2,8573,6514,5357,2208,6379,73410,83312,21013,40914,02814,70316,699
Borrowings1,7081,5991,9032,4642,3332,1632,5061,8542,3883,2293,0142,822
Other Liabilities2,6593,0233,3913,5664,0754,5775,0985,3736,7805,7996,6487,325
Total Liabilities7,2288,2789,83313,25415,04816,47818,44119,44222,58223,06024,36926,849
Fixed Assets2,9192,9743,4364,6085,5026,0926,7868,8709,4419,52210,11812,046
CWIP4153596281,0598481,0791,4031,7411,0021,2333,0462,385
Investments4299041,0813,1383,3824,1453,8551,5195,8743,6563,0853,383
Other Assets3,4654,0414,6884,4485,3165,1626,3977,3126,2658,6488,1209,036
Total Assets7,2288,2789,83313,25415,04816,47818,44119,44222,58223,06024,36926,849

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 1,0341,4991,6993,0431,9562,4131,2532,2714,325-5782,7553,300
Cash from Investing Activity -977-959-1,791-3,408-1,393-2,014-1,386-162-5,087169-1,922-2,378
Cash from Financing Activity -51-31367212-438-45342-1,032-250424-840-868
Net Cash Flow6228-24-152125-53-911,077-1,01214-655

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2011Sep 2012Sep 2013Sep 2014
Free Cash Flow2.000.000.000.001.000.00-1.00-1.00810.000.000.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days444647335452545248444042
Inventory Days728379621188811311011512098108
Days Payable4147503669636472129605864
Cash Conversion Cycle768376581037810290341048086
Working Capital Days5450471727162621-13491924
ROCE %24%29%27%49%23%17%15%13%14%6%7%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters27.84%27.90%27.95%27.94%27.87%27.88%27.85%27.77%27.75%27.76%27.78%27.77%
FIIs14.77%14.58%15.54%16.05%16.46%18.22%18.05%18.77%19.58%19.41%19.75%19.08%
DIIs12.96%12.91%11.73%12.46%12.49%11.37%11.65%11.71%11.19%11.45%10.57%10.74%
Public44.43%44.61%44.79%43.55%43.18%42.53%42.45%41.75%41.48%41.39%41.92%42.41%
No. of Shareholders54,44662,40666,78656,54448,37741,88143,50037,93837,50437,58447,66357,325

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Equity Hybrid Fund210,0003.822345.3433,0002024-11-12536.36%
Kotak Emerging Equity Fund - Regular Plan36,1401.1403.6233,0002024-11-129.52%
Kotak Flexicap Fund - Regular Plan33,0000.89368.5533,0002024-11-120%
Aditya Birla Sun Life India GenNext Fund3,3760.8637.733,0002024-11-12-89.77%
Kotak Equity Arbitrage Fund - Regular Plan3,3500.1237.4133,0002024-11-12-89.85%
SBI Infrastructure Fund2,3001.6225.6933,0002024-11-12-93.03%
Tata Ethical Fund - Regular Plan1,9501.0721.7833,0002024-11-12-94.09%
Axis Quant Fund1,5311.7617.133,0002024-11-12-95.36%
Invesco India Arbitrage Fund1,4000.1515.6433,0002024-11-12-95.76%
Aditya Birla Sun Life Midcap Fund1,3230.3214.7833,0002024-11-12-95.99%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)4907.241813.101577.973011.143354.20
Diluted EPS (Rs.)4907.241813.101577.973011.143354.20
Cash EPS (Rs.)8281.134768.894420.495702.455671.91
Book Value[Excl.RevalReserv]/Share (Rs.)39394.2534688.2533094.1031636.3428808.58
Book Value[Incl.RevalReserv]/Share (Rs.)39394.2534688.2533094.1031636.3428808.58
Revenue From Operations / Share (Rs.)59361.3454265.3345558.3038120.7338300.38
PBDIT / Share (Rs.)10779.256230.645582.037434.626390.07
PBIT / Share (Rs.)7406.673275.332739.934744.134073.28
PBT / Share (Rs.)6574.102522.972141.344096.323382.67
Net Profit / Share (Rs.)4908.561813.581578.403011.963355.12
NP After MI And SOA / Share (Rs.)4908.541813.561578.373011.933355.12
PBDIT Margin (%)18.1511.4812.2519.5016.68
PBIT Margin (%)12.476.036.0112.4410.63
PBT Margin (%)11.074.644.7010.748.83
Net Profit Margin (%)8.263.343.467.908.76
NP After MI And SOA Margin (%)8.263.343.467.908.76
Return on Networth / Equity (%)12.465.224.769.5211.64
Return on Capital Employeed (%)16.408.237.2113.1312.17
Return On Assets (%)7.753.152.905.657.31
Long Term Debt / Equity (X)0.040.050.050.060.06
Total Debt / Equity (X)0.120.160.200.120.12
Asset Turnover Ratio (%)0.980.970.830.760.85
Current Ratio (X)1.371.231.461.431.55
Quick Ratio (X)0.780.680.871.020.99
Inventory Turnover Ratio (X)3.543.813.793.063.24
Dividend Payout Ratio (NP) (%)3.568.279.500.001.78
Dividend Payout Ratio (CP) (%)2.113.143.390.001.05
Earning Retention Ratio (%)96.4491.7390.500.0098.22
Cash Earning Retention Ratio (%)97.8996.8696.610.0098.95
Interest Coverage Ratio (X)12.958.289.3311.489.25
Interest Coverage Ratio (Post Tax) (X)6.903.413.645.655.86
Enterprise Value (Cr.)58246.5437807.0830186.4236418.6525023.51
EV / Net Operating Revenue (X)2.311.641.562.251.54
EV / EBITDA (X)12.7414.3112.7511.559.24
MarketCap / Net Operating Revenue (X)2.251.551.432.161.52
Retention Ratios (%)96.4391.7290.490.0098.21
Price / BV (X)3.382.421.962.602.02
Price / Net Operating Revenue (X)2.251.551.432.161.52
EarningsYield0.030.020.020.030.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Error: EPS data not available for calculation.

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 28.08, which is a positive sign.
  3. The company has higher reserves (9,876.33 cr) compared to borrowings (2,331.92 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (15.85 cr) and profit (204.46 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 80.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in MRF Ltd:
    1. Net Profit Margin: 8.26%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.4% (Industry Average ROCE: 18.69%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.46% (Industry Average ROE: 15.53%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.9
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.78
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26 (Industry average Stock P/E: 25.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.12
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

MRF Ltd. is a Public Limited Listed company incorporated on 05/11/1960 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L25111TN1960PLC004306 and registration number is 004306. Currently Company is involved in the business activities of Manufacture of rubber products. Company’s Total Operating Revenue is Rs. 18989.51 Cr. and Equity Capital is Rs. 4.24 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & TubesNo. 114, Greams Road, Chennai (Madras) Tamil Nadu 600006mrfshare@mrfmail.com
http://www.mrftyres.com
Management
NamePosition Held
Mr. K M MammenChairman & Managing Director
Mr. Arun MammenVice Chairman & Mng.Director
Mr. Rahul Mammen MappillaiManaging Director
Mr. Samir Thariyan MappillaiWhole Time Director
Mr. Varun MammenWhole Time Director
Dr. Cibi MammenDirector
Mrs. Ambika MammenDirector
Mr. Ashok JacobDirector
Mr. V SridharDirector
Mr. Vijay R KirloskarDirector
Mr. Ranjit I JesudasenDirector
Dr. Salim Joseph ThomasDirector
Mr. Jacob KurianDirector
Mrs. Vimla AbrahamDirector
Mr. Ramesh RangarajanDirector
Mr. Dinshaw Keku ParakhDirector
Mr. Arun VasuDirector
Mr. Vikram ChesettyDirector
Mr. Prasad OommenDirector
Mr. Vikram Taranath HosangadyDirector

FAQ

What is the latest intrinsic value of MRF Ltd?

The latest intrinsic value of MRF Ltd as on 12 November 2024 is ₹137664.22, which is 15.34% higher than the current market price of ₹119,354.00.

What is the Market Cap of MRF Ltd?

The Market Cap of MRF Ltd is 50,606 Cr..

What is the current Stock Price of MRF Ltd as on 12 November 2024?

The current stock price of MRF Ltd as on 12 November 2024 is ₹1,19,354.

What is the High / Low of MRF Ltd stocks in FY 2024?

In FY 2024, the High / Low of MRF Ltd stocks is 1,51,445/1,07,033.

What is the Stock P/E of MRF Ltd?

The Stock P/E of MRF Ltd is 26.0.

What is the Book Value of MRF Ltd?

The Book Value of MRF Ltd is 41,659.

What is the Dividend Yield of MRF Ltd?

The Dividend Yield of MRF Ltd is 0.17 %.

What is the ROCE of MRF Ltd?

The ROCE of MRF Ltd is 16.1 %.

What is the ROE of MRF Ltd?

The ROE of MRF Ltd is 12.6 %.

What is the Face Value of MRF Ltd?

The Face Value of MRF Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in MRF Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE