Overall Fundamental outlook

Business Operations:

Sector: Consumer Cyclical
Industry: Auto Parts

MRF Limited, together with its subsidiaries, engages in the manufacture, sale, and trading of rubber products in India and internationally. The company provides tires for passenger cars, two wheelers, three wheelers, pick up, farm vehicles, over-the-road trucks, fighter aircraft, and various commercial vehicles; rubber products, such as tubes, flaps, retreaded tires, and tread rubber products; and manufactures specialty coatings. It also involved in the paints and coats, toys, and motorsports businesses. In addition, the company operates MRF T&S, MRF TireTok, MRF Tyredrome, MRF FASST, MRF MuscleZone, and shops that provide computerized nitrogen inflation, tubeless repair, wheel alignment, wheel balancing and tire changing; robotic wheel alignment, vehicle safety test lane, diagnostic wheel balancing, A/C recovery and recharging, electronic headlight aligner, nitrogen generator membrane type, and special two-wheeler tire changer; and wheels removal and refitment, and tire mounting and de-mounting services. It exports and sells its products through dealer networks. The company was founded in 1946 and is based in Chennai, India.

Revenue projections:

Revenue projections for MRF
Revenue projections for MRF

The projected decline in MRF's revenues compared to last year is expected to make investors cautious. A drop in revenue often has a direct negative effect on the company's bottom line, signaling potential challenges that could undermine investor confidence and reduce overall profitability.

Financial Ratios:

currentRatio 1.645000
forwardPE 18.795456
debtToEquity 15.288000
earningsGrowth 0.371000
revenueGrowth 0.134000
grossMargins 0.373240
operatingMargins 0.107290
trailingEps 5722.200000
forwardEps 6759.080600

MRF's current ratio is 1.645, showing the company's capacity to service its short-term debt through its cash reserves and current assets. This is a positive indicator of liquidity, suggesting MRF has no trouble covering its short-term financial obligations.
MRF's Forward PE being in a reasonable range suggests the stock is fairly priced based on its earnings. The stock isn't overpriced, leaving room for growth, making it an attractive investment for those seeking opportunities for future value appreciation.
MRF Limited's low Debt-to-Equity ratio indicates the company is not over-leveraged. By limiting its dependence on debt, MRF Limited reduces its financial risk and demonstrates a strong capital structure, making it a more stable investment option for those wary of excessive borrowing.
MRF's positive earnings and revenue growth indicate that the company is expected to continue expanding its business. These trends reflect strong financial health, with increasing profits and sales suggesting sustained growth and success for MRF.
MRF's forward EPS exceeds its trailing EPS, indicating that the company is projected to be more profitable in the current financial year compared to the previous one. This suggests positive growth and improved earnings, signaling an optimistic outlook for MRF's financial performance.

Price projections:

Price projections for MRF
Price projections for MRF

The price of MRF Limited has consistently remained close to the lower end of price projections. This trend may reflect uncertainty in the market regarding the company's ability to deliver on growth expectations.

Recommendation changes over time:

Recommendations trend for MRF
Recommendations trend for MRF


The analysts' sell bias for MRF suggests caution for investors, but it's essential to make decisions based on a wide array of market indicators. This approach ensures a comprehensive view of MRF's position, helping to navigate any potential risks more effectively.