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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of MRF Ltd

About the Company - MRF Ltd

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.
Tyres & TubesNo. 114, Greams Road, Chennai (Madras) Tamil Nadu
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

MRF Ltd. Share Price Update

Share PriceValue
Previous Day₹1,50,777.90

Basic Stock Data of MRF Ltd

Market Cap 61,647 Cr.
Current Price 1,45,393
High / Low1,51,445/81,380
Stock P/E30.4
Book Value 37,328
Dividend Yield0.12 %
ROCE7.43 %
ROE4.87 %
Face Value 10.0

Data Source:

Competitors of MRF Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Modi Rubber Ltd 265 Cr. 106106/51.117.0 2580.00 %4.89 %4.32 % 10.0
Balkrishna Industries Ltd 45,217 Cr. 2,3392,796/1,90936.3 4250.69 %13.8 %13.8 % 2.00
TVS Srichakra Ltd 3,317 Cr. 4,3305,097/2,45430.9 1,4030.73 %9.23 %8.16 % 10.0
Industry Average16,266.33 Cr2,258.3328.07695.330.47%9.31%8.76%7.33

MRF Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Operating Profit8679777664965214935404934815628541,1301,157
OPM %20%21%16%12%11%10%10%9%8%10%15%18%19%
Other Income45645893897066347771707571
Profit before tax571690449222255202228164174231501787791
Tax %28%25%26%26%26%26%28%25%25%24%32%25%26%
Net Profit411521332166189149165124130175341589587
EPS in Rs968.901,227.37783.17390.42445.78352.24389.52291.43306.19412.23803.241,388.201,383.27

MRF Ltd Quarterly Chart

MRF Ltd Profit & Loss

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
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
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%

MRF Ltd Profit & Loss Yearly Chart

MRF Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:9%
3 Years:12%
Compounded Profit Growth
10 Years:2%
5 Years:-9%
3 Years:-21%
Stock Price CAGR
10 Years:23%
5 Years:21%
3 Years:20%
1 Year:71%
Return on Equity
10 Years:13%
5 Years:8%
3 Years:6%
Last Year:5%

MRF Ltd Balance Sheet

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4444444444444
Other Liabilities2,4392,6593,0233,3913,5664,0754,5775,0985,3736,7805,7996,6486,842
Total Liabilities6,3337,2288,2789,83313,25415,04816,47818,44119,44222,58223,06024,36925,809
Fixed Assets1,9722,9192,9743,4364,6085,5026,0926,7868,8709,4419,52210,11810,980
Other Assets3,2453,4654,0414,6884,4485,3165,1626,3977,3126,2658,6488,1208,447
Total Assets6,3337,2288,2789,83313,25415,04816,47818,44119,44222,58223,06024,36925,809

MRF Ltd Reserves and Borrowings Chart

MRF Ltd Cash Flow

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6341,0341,4991,6993,0431,9562,4131,2532,2714,325-5782,755
Cash from Investing Activity -1,111-977-959-1,791-3,408-1,393-2,014-1,386-162-5,087169-1,922
Cash from Financing Activity 486-51-31367212-438-45342-1,032-250424-840
Net Cash Flow96228-24-152125-53-911,077-1,01214-6

MRF Ltd Financial Efficiency Indicators

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days494446473354525452484440
Inventory Days78728379621188811311011512098
Days Payable5241475036696364721296058
Cash Conversion Cycle757683765810378102903410480
Working Capital Days495450471727162621-134919
ROCE %17%24%29%27%49%23%17%15%13%14%6%7%

MRF Ltd Financial Efficiency Indicators Chart

MRF Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
No. of Shareholders41,54250,63055,80354,44662,40666,78656,54448,37741,88143,50037,93837,504

MRF Ltd Shareholding Pattern Chart

No. of MRF Ltd Shareholders

MRF Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Equity Hybrid Fund2100003.822345.34
Kotak Emerging Equity Fund - Regular Plan361401.1403.62
Kotak Flexicap Fund - Regular Plan330000.89368.55
Aditya Birla Sun Life India GenNext Fund33760.8637.7
Kotak Equity Arbitrage Fund - Regular Plan33500.1237.41
SBI Infrastructure Fund23001.6225.69
Tata Ethical Fund - Regular Plan19501.0721.78
Axis Quant Fund15311.7617.1
Invesco India Arbitrage Fund14000.1515.64
Aditya Birla Sun Life Midcap Fund13230.3214.78

MRF Ltd ROCE Trend

MRF Ltd EPS Trend

MRF Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Basic EPS (Rs.)1813.101577.973011.143354.202665.82
Diluted EPS (Rs.)1813.101577.973011.143354.202665.82
Cash EPS (Rs.)4768.894420.495702.455671.914571.25
Book Value[Excl.RevalReserv]/Share (Rs.)34688.2533094.1031636.3428808.5825560.07
Book Value[Incl.RevalReserv]/Share (Rs.)34688.2533094.1031636.3428808.5825560.07
Revenue From Operations / Share (Rs.)54265.3345558.3038120.7338300.3837883.16
PBDIT / Share (Rs.)6230.645582.037434.626390.076431.82
PBIT / Share (Rs.)3275.332739.934744.134073.284527.10
PBT / Share (Rs.)2522.972141.344096.323382.673896.65
Net Profit / Share (Rs.)1813.581578.403011.963355.122666.53
NP After MI And SOA / Share (Rs.)1813.561578.373011.933355.122666.56
PBDIT Margin (%)11.4812.2519.5016.6816.97
PBIT Margin (%)6.036.0112.4410.6311.95
PBT Margin (%)4.644.7010.748.8310.28
Net Profit Margin (%)3.343.467.908.767.03
NP After MI And SOA Margin (%)3.343.467.908.767.03
Return on Networth / Equity (%)5.224.769.5211.6410.43
Return on Capital Employeed (%)8.237.2113.1312.1714.79
Return On Assets (%)3.152.905.657.316.13
Long Term Debt / Equity (X)
Total Debt / Equity (X)
Asset Turnover Ratio (%)0.950.830.760.850.91
Current Ratio (X)1.231.461.431.551.55
Quick Ratio (X)0.680.871.020.991.00
Inventory Turnover Ratio (X)3.803.793.063.243.97
Dividend Payout Ratio (NP) (%)8.279.500.001.782.25
Dividend Payout Ratio (CP) (%)3.143.390.001.051.31
Earning Retention Ratio (%)91.7390.500.0098.2297.75
Cash Earning Retention Ratio (%)96.8696.610.0098.9598.69
Interest Coverage Ratio (X)8.289.3311.489.2510.20
Interest Coverage Ratio (Post Tax) (X)3.413.645.655.865.23
Enterprise Value (Cr.)37807.0830186.4236418.6525023.5126613.88
EV / Net Operating Revenue (X)1.641.562.251.541.66
EV / EBITDA (X)14.3112.7511.559.249.76
MarketCap / Net Operating Revenue (X)1.551.432.161.521.53
Retention Ratios (%)91.7290.490.0098.2197.74
Price / BV (X)2.421.962.602.022.27
Price / Net Operating Revenue (X)1.551.432.161.521.53

MRF Ltd Profitability Ratios (%)

MRF Ltd Liquidity Ratios

MRF Ltd Liquidity Ratios (%)

MRF Ltd Interest Coverage Ratios (%)

MRF Ltd Valuation Ratios

Fair Value of MRF Ltd Stock

Fair Value: ₹55329.67

The stock is overvalued by 61.94% compared to the current price ₹145393

*Investments are subject to market risks

Strength and Weakness of MRF Ltd Stock

  1. The stock has a high average ROCE of 20.08%, which is a positive sign.
  2. The company has higher reserves (9,225.69 cr) compared to borrowings (2,299.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (15.85 cr) and profit (204.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 3,871.95 and average Dividend Yield of 9.41%.
  2. The stock has a high average Working Capital Days of 30.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 79.92, which may not be favorable.

About the Author

Author Avatar

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 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