India's first 6-digit stock: MRF share price crosses Rs 1 lakh
n the past year, the MRF stock has rallied over 45 percent and gained 81 percent from the March 2020 low of Rs 55,000
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The MRF share price crossed the much-awaited Rs 1 lakh mark on June 13, as the stock opened over a percent higher. At 9.25 am, the stock was quoting at Rs 1,00,050 on the NSE.
The stock had earlier hit the Rs 1 lakh mark in May but in the futures segment.
In the past year, MRF has rallied over 45 percent. It has gained 81 percent from the March 2020 low of Rs 55,000. In December 2022, the stock rose to Rs 94,500 but failed to sustain that level.
The Q4 boost
A spike came after May 3, when the company declared its Q4 results. The tyre maker reported a consolidated profit after tax (PAT) of Rs 313.53 crore for the quarter ended March 31, 2023, up 86 percent year-on-year (YoY). In the same quarter of the previous year, it posted a net profit of Rs 168.53 crore.
Consolidated revenue from operations came in at Rs 5,841.7 crore, up 10.12 percent YoY. The company's board declared a final dividend of Rs 169 (1,690 percent on the face value of Rs 10 per share).
Analysts trumped
As per Bloomberg, the stock has only one "buy" call, two "hold" and eight "sell" calls. The 12-month target price on the stock is Rs 84,047, indicating a 16 percent slump from the current level.
Most analysts have a "sell" rating on the stock because of its high valuations. At a trailing price-to-earnings ratio of 55x, it is the most expensive tyre stock.
"The current forward valuation at 22.3x FY25E earnings per share represents an almost 100 percent premium to its peers, despite a weakening competitive position and similar capital efficiencies," Motilal Oswal Financial Services has said.
A year back, too, analysts were cautious. There were four "buy" calls, three "hold" and five "sell" calls on the stock and the 12-month target price was around Rs 70,800. The stock, however, has managed to cross the Rs 1 lakh mark.
SOURCE - MONEY CONTROL
The MRF share price crossed the much-awaited Rs 1 lakh mark on June 13, as the stock opened over a percent higher. At 9.25 am, the stock was quoting at Rs 1,00,050 on the NSE.
The stock had earlier hit the Rs 1 lakh mark in May but in the futures segment.
In the past year, MRF has rallied over 45 percent. It has gained 81 percent from the March 2020 low of Rs 55,000. In December 2022, the stock rose to Rs 94,500 but failed to sustain that level.
The Q4 boost
A spike came after May 3, when the company declared its Q4 results. The tyre maker reported a consolidated profit after tax (PAT) of Rs 313.53 crore for the quarter ended March 31, 2023, up 86 percent year-on-year (YoY). In the same quarter of the previous year, it posted a net profit of Rs 168.53 crore.
Consolidated revenue from operations came in at Rs 5,841.7 crore, up 10.12 percent YoY. The company's board declared a final dividend of Rs 169 (1,690 percent on the face value of Rs 10 per share).
Analysts trumped
As per Bloomberg, the stock has only one "buy" call, two "hold" and eight "sell" calls. The 12-month target price on the stock is Rs 84,047, indicating a 16 percent slump from the current level.
Most analysts have a "sell" rating on the stock because of its high valuations. At a trailing price-to-earnings ratio of 55x, it is the most expensive tyre stock.
"The current forward valuation at 22.3x FY25E earnings per share represents an almost 100 percent premium to its peers, despite a weakening competitive position and similar capital efficiencies," Motilal Oswal Financial Services has said.
A year back, too, analysts were cautious. There were four "buy" calls, three "hold" and five "sell" calls on the stock and the 12-month target price was around Rs 70,800. The stock, however, has managed to cross the Rs 1 lakh mark.
SOURCE - MONEY CONTROL
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