MRF logo

MRF

MRF NSE

Key Fundamentals

MidcapTyresAutomobiles
Market Cap
₹52,760 Cr
Volatility
Moderate
P/E Ratio
21.7
EBITDA
₹5,405 Cr
Return on Equity
11.57%
Debt to Equity
0.15
Book Value
₹49,454.97
EPS
₹4,866.72
52W High
₹1,63,600
52W Low
₹1,22,000

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Weaknesses

1
  • Company has a low return on equity of 12.1% over last 3 years.

Growth Rate

Revenue Growth
10.79% lower than 3Y
Net Income Growth
29.51% lower than 3Y
Cash Flow Change
146% higher than 3Y
ROE
14.9% higher than 3Y
ROCE
13.99% higher than 3Y
EBITDA Margin (Avg.)
8.51% higher than 3Y

AI Analysis — Bull vs Bear

6d ago
AI opinion · based on fundamentals
Risk medium

MRF Ltd has a market capitalisation of about ₹52,505 Cr and trades at a P/E of 21.8x and a P/B of 2.51x. TTM profit grew 37% on 11% sales growth, and 3-year profit CAGR is 52%. Over 10 years, though, profit CAGR is 0%, sales CAGR is 4%, and return on equity has stayed in a 10-13% range. The stock is down 17% over the past year, and its 3-year CAGR is 4%.

Bull Case 7
  • TTM profit grew 37% while sales grew 11%. Profit rising more than three times as fast as revenue suggests meaningful margin expansion and operating leverage in the most recent period.
  • 3-year compounded profit growth of 52% is far ahead of 3-year sales growth of 11%. This points to a sustained margin recovery over the medium term, not a one-quarter spike.
  • Sales have compounded steadily at 14% over 5 years, 11% over 3 years and 11% on a TTM basis. That is consistent double-digit topline growth in recent years.
  • Return on equity is trending up: 10% (5-year average), 12% (3-year average) and 13% last year. Capital efficiency appears to be improving gradually.
  • The stock fell 17% over the past year while TTM profit rose 37%. Price and earnings have moved in opposite directions, so the P/E has compressed to 21.8x.
  • A P/B of 2.51x is fairly modest for a company with a market cap of about ₹52,505 Cr and an established position in Indian tyre manufacturing.
  • Over 10 years the stock has compounded at 10%, and over 5 years at 9%. Despite recent weakness, long-term holders have seen positive returns.
Bear Case 7
  • The 3-year average ROE of 12.1% is low, and the 10-year average is only 11%. That is modest for a capital-intensive manufacturer and may sit close to or below its cost of equity.
  • 10-year compounded profit growth is 0%. Despite the recent rebound, earnings have not compounded over a full decade, which highlights how cyclical tyre-industry profitability is.
  • 10-year sales CAGR is only 4%, well below the 14% 5-year figure. Long-run topline growth has been subdued, and part of the recent growth may reflect price increases and recovery from a low base.
  • The 52% 3-year profit CAGR likely comes partly off a depressed base. The more normalised 5-year profit CAGR is 14%. Tyre margins are sensitive to raw material costs such as natural rubber and crude-linked inputs, so the recent margin gains could reverse.
  • Dividend yield is only 0.19%, so shareholders get very little income. Returns depend almost entirely on share price appreciation.
  • The stock is down 17% over 1 year and has compounded at just 4% over 3 years. That has lagged its own 3-year profit growth of 52%, suggesting the market is doubting how durable those earnings are.
  • A P/E of 21.8x and P/B of 2.51x against an ROE of about 12-13% imply an earnings yield of roughly 4.6%. The valuation still prices in continued growth despite mid-level returns on capital.

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

14d ago
Headwinds 6
  • Gross margin contracts 570 bps Aug 20

    Gross margins fell 570 basis points sequentially to 32.7% in Q1FY27 due to intense input cost inflation from natural rubber and crude derivatives.

  • Raw material costs rising further Aug 20

    Anand Rathi warns of an 8-10% rise in MRF's raw-material basket in Q2FY27, driven by Middle East conflicts and supply-chain disruptions.

  • EBITDA hits six-quarter low Aug 20

    Standalone EBITDA slumped 8% YoY to ₹948.60 crore in Q1FY27, a six-quarter low, while operating margin hit a multi-quarter low.

  • Stock down 13% in 2026 Aug 20

    MRF shares have declined around 13% so far in 2026 and trade at an expensive 20x estimated FY28 earnings per Bloomberg data.

  • Rising competitive threats Aug 20

    Railways' Western Dedicated Freight Corridor threatens M&HCV replacement demand, while Balkrishna Industries' entry could trigger pricing wars impacting near-term profitability.

  • Price hikes lag peers Aug 20

    MRF has implemented only single-digit price hikes in the replacement market, which still lag behind listed peers despite rising input costs.

Positives 2
  • Revenue up 10% YoY Aug 20

    Standalone revenue rose 10% YoY to ₹8,291.56 crore in Q1FY27, supported by replacement and OEM demand along with calibrated price hikes.

  • Other income surges 53% Aug 20

    Other income jumped 53% to ₹191.48 crore in Q1FY27, partially offsetting the margin compression and limiting adjusted PAT decline to just 2%.

TL;DR: MRF posted solid 10% revenue growth in Q1FY27 driven by replacement and OEM demand, but the quarter was overshadowed by severe margin compression with gross margins contracting 570 bps and EBITDA hitting a six-quarter low. Key risks include an expected 8-10% rise in raw material costs in Q2FY27, intensifying competition from new entrants and railways, and price hikes that lag peers. With the stock down 13% in 2026 and trading at 20x FY28 earnings, the trend is deteriorating as cost headwinds outpace MRF's ability to pass them through.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
6,440
6,217
6,162
6,349
7,196
6,881
7,001
7,075
7,676
7,379
8,050
8,044
8,416
Expenses
5,310
5,060
5,108
5,437
6,037
5,870
6,166
6,000
6,605
6,253
6,651
6,739
7,425
Operating Profit
1,130
1,157
1,055
912
1,160
1,011
835
1,074
1,070
1,126
1,400
1,305
991
OPM %
18%
19%
17%
14%
16%
15%
12%
15%
14%
15%
17%
16%
12%
Other Income
75
71
78
94
84
113
98
115
129
108
50
153
195
Interest
84
86
90
93
85
84
94
98
98
90
91
86
88
Depreciation
333
351
360
385
396
410
415
433
429
445
438
442
448
PBT
787
791
682
527
763
631
424
659
672
699
920
930
650
Tax %
25%
26%
25%
25%
25%
25%
26%
23%
25%
25%
25%
24%
24%
Net Profit
589
587
510
396
571
471
315
510
502
526
695
702
495
EPS in Rs
1,388
1,383
1,202
934
1,346
1,110
744
1,204
1,183
1,239
1,638
1,656
1,168
Figures in ₹ Crores

Profit & Loss

Particulars Sep 2014Mar 2016 18mMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
13,329
20,179
13,412
14,954
16,062
16,237
16,162
19,317
23,008
25,169
28,152
31,149
31,889
Expenses
11,384
15,743
10,763
12,665
13,744
13,855
13,208
17,256
20,604
20,896
24,062
26,238
27,068
Operating Profit
1,945
4,437
2,649
2,288
2,317
2,382
2,954
2,061
2,404
4,272
4,090
4,910
4,821
OPM %
15%
22%
20%
15%
14%
15%
18%
11%
10%
17%
15%
16%
15%
Other Income
63
317
327
330
416
335
205
315
245
306
414
440
506
Interest
232
361
257
259
273
301
282
263
326
361
368
374
356
Depreciation
424
737
611
707
808
982
1,141
1,205
1,253
1,430
1,654
1,754
1,773
PBT
1,353
3,656
2,109
1,653
1,652
1,434
1,737
908
1,070
2,787
2,483
3,222
3,198
Tax %
33%
31%
30%
32%
32%
1%
26%
26%
28%
25%
25%
25%
—
Net Profit
908
2,509
1,486
1,132
1,131
1,423
1,277
669
769
2,081
1,873
2,426
2,418
EPS in Rs
2,142
5,917
3,504
2,668
2,666
3,354
3,011
1,578
1,813
4,907
4,417
5,720
5,701
Div. Payout %
2%
2%
2%
2%
2%
3%
5%
10%
10%
4%
5%
4%
—
Figures in ₹ Crores

Balance Sheet

Particulars Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
4
4
4
4
4
4
4
4
4
4
4
4
Reserves
4,535
7,220
8,637
9,734
10,833
12,210
13,409
14,028
14,703
16,699
18,606
20,970
Borrowings
1,903
2,464
2,333
2,163
2,506
1,854
2,388
3,229
3,014
2,822
3,771
3,207
Other Liabilities
3,391
3,566
4,075
4,577
5,098
5,373
6,780
5,799
6,648
7,325
7,308
7,772
Total Liabilities
9,833
13,254
15,048
16,478
18,441
19,442
22,582
23,060
24,369
26,849
29,689
31,954
Fixed Assets
3,436
4,608
5,502
6,092
6,786
8,870
9,441
9,522
10,118
12,046
13,223
12,966
CWIP
628
1,059
848
1,079
1,403
1,741
1,002
1,233
3,046
2,385
1,169
1,034
Investments
1,081
3,138
3,382
4,145
3,855
1,519
5,874
3,656
3,085
3,383
4,548
3,398
Other Assets
4,688
4,448
5,316
5,162
6,397
7,312
6,265
8,648
8,120
9,036
10,750
14,555
Total Assets
9,833
13,254
15,048
16,478
18,441
19,442
22,582
23,060
24,369
26,849
29,689
31,954
Figures in ₹ Crores

Cash Flow

Particulars Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
1,699
3,043
1,956
2,413
1,253
2,271
4,325
-578
2,755
3,303
1,865
4,590
Investing
-1,791
-3,408
-1,393
-2,014
-1,386
-162
-5,087
166
-1,922
-2,381
-2,077
-3,539
Financing
67
212
-438
-453
42
-1,032
-250
424
-840
-868
282
-1,120
Net Cash Flow
-24
-152
125
-53
-91
1,077
-1,012
12
-6
55
70
-69
Free Cash Flow
454
737
590
849
-710
-479
3,473
-2,283
-535
1,141
569
3,164
CFO/OP
109
95
89
126
72
114
164
-18
128
94
60
107
Figures in ₹ Crores

Ratios

Particulars Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
47
33
54
52
54
52
48
44
40
42
44
42
Inventory Days
79
62
118
88
113
110
115
120
98
108
115
101
Days Payable
50
36
69
63
64
72
129
60
58
64
57
60
Cash Conversion Cycle
76
58
103
78
102
90
34
104
80
86
101
83
Working Capital Days
30
1
4
-1
2
5
-41
10
-8
3
8
7
ROCE %
27%
49%
23%
17%
15%
13%
14%
7%
7%
17%
14%
16%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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Shareholding Pattern

Others29.49%Promot.27.77%DIIs12.10%Public13.22%FIIs17.42%As ofJun 2026
0.09% of promoter holding pledged as of Jun 2026

Documents

Frequently Asked Questions about MRF

What does MRF Ltd do?
Madras Rubber Factory Limited (MRF) is the parent company of the MRF Group. The Co is engaged in the business of manufacturing tyres[1]
Where is MRF Ltd (MRF) listed?
MRF Ltd trades as MRF on the NSE and under code 500290 on the BSE.
Which sector does MRF Ltd belong to?
MRF Ltd is classified under the Automobiles sector, in the Tyres industry.
What is the market capitalisation of MRF Ltd?
MRF Ltd has a market capitalisation of ₹52,760 Cr, which places it in the Large Cap band.
What is the PE ratio of MRF Ltd?
MRF Ltd trades at a PE ratio of 21.70, on earnings per share of ₹4,866.72, against a book value of ₹49,454.97 per share.
What is the 52-week high and low of MRF Ltd?
Over the last 52 weeks MRF Ltd has traded between ₹1,22,000 and ₹1,63,600.
Does MRF Ltd pay dividends?
MRF Ltd has a dividend yield of 0.19%.
What is the Return on Equity (ROE) of MRF Ltd?
MRF Ltd reported a return on equity of 11.57%. Its debt-to-equity ratio is 0.15.

Company Information

Madras Rubber Factory Limited (MRF) is the parent company of the MRF Group. The Co is engaged in the business of manufacturing tyres[1]

Website mrftyres.com
CEO Mr. K. M. Vinoo Mammen B.A.
Employees 17,850
Listed 1996-09-18
Face Value ₹ 10
Issued Size 42,41,143

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