On Tuesday, the shares of MRF, a company that makes tyres, became the first Indian shares to hit Rs 1 lakh. This was an amazing thing to happen.
On Tuesday, the shares of MRF, a company that makes tyres, became the first Indian shares to hit Rs 1 lakh. This was an amazing thing to happen. Shares of MRF rose by more than 1% during the first hour of trading. This was the first time in Dalal Street’s history that a stock hit the six-figure mark.
On Tuesday, shares of MRF went up by more than 1.3% and hit Rs 1,00,300 before giving up some of their gains. The total value of the company on the market was close to Rs 42,500 crore. On Monday, the price of the scrip was Rs 98939.70.
MRF shares have gone up more than 45% in the last year, and they are up 52% from their 52-week low of Rs 65,900. In the last three years, the stock has given a return of 82%.
For the quarter ending March 31, 2023, the company that makes tyres said that its total net profit went up by 86%, to Rs 313.5 crore. In the same time last year, it had a combined net profit of Rs 168.5 crore. The company also said that each owner would get a dividend of Rs 169.
For the fourth quarter that ended in March 2023, MRF’s consolidated revenue from core businesses went up 10%, from Rs 5,305 crore to Rs 5,842 crore. The company’s other income went up by a small amount, from Rs 66 crore to Rs 70 crore.
The price-to-earnings (P/E) multiple for MRF shares is 55 times, and the price-to-book-value (P/BV) multiple is 2.89 times. Its return on equity (RoE) is 5.35 percent, and its return on capital employed (RoCE) is 7.94 percent.
As of March 31, 2023, the promoters owned 27.84% of the company. The remaining 72.164% was owned by public owners, including 18.05% by FIIs and 11.66% by DIIs. But the data shows that only 0.09 percent of pledges come from promoters.
The data from Trendlyne shows that nine experts have all said that the stock is a strong sell. Kotak Institutional Equities says that its fair value is Rs 66,000, which is close to its 52-week lows. In a report that came out in May 2023, Motilal Oswal said that the tyre maker should be “sold” at a price of Rs 75,400.
But when they read the charts, technical experts come to a different conclusion. MRF’s quarterly charts show that it has been in a strong rise since 1470, with higher tops and higher bottoms being formed. Sujit Deodhar, the head technical analyst at Wellworth Share & Stock Broking, said that this stock has been going up for years and is more of an investment bet than a trade.
At the moment, the stock is trading at its all-time high and is going to Rs 1,02,795 to test its resistance levels. He said that if the stock closed the quarter above the resistance levels, the stock would go up a lot because the technical indicator MACD showed a new buy signal. The goal was set at Rs 1,47,725 levels.
“So, investors who already own this stock should keep their long positions, and any dip towards Rs 89,000-90,000 (the 200-day moving average) should be used as a chance to buy more,” Deodhar said.