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

Revenues for MRF Limited are expected to drop compared to the previous year, which could be a cause for concern for investors. A decline in earnings may negatively impact the company's profitability, leading cautious investors to reconsider their positions, as it often signals challenges in overall financial health.

Financial Ratios:

currentRatio 1.495000
forwardPE 23.346996
debtToEquity 20.397000
earningsGrowth 0.293000
revenueGrowth 0.116000
grossMargins 0.352130
operatingMargins 0.102500
trailingEps 4404.520000
forwardEps 5298.150000

MRF's current ratio of 1.495 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that MRF is financially well-prepared to meet its liabilities without difficulty.
MRF Limited's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
MRF's low Debt-to-Equity ratio shows that the company avoids excessive reliance on debt, reducing financial risk. This suggests a more secure financial position with less vulnerability to debt-related risks, making MRF a stable and conservative investment.
With both earnings and revenue growth showing positive trends, MRF is expected to expand its business. This signals a healthy financial trajectory, suggesting that the company is positioned for continued growth and increasing profitability.
MRF Limited's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that MRF Limited is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for MRF
Price projections for MRF

MRF's price projections have been revised higher over time, reflecting increased confidence in the company's future potential. This steady upward trend suggests analysts expect MRF to continue its positive trajectory.

Recommendation changes over time:

Recommendations trend for MRF
Recommendations trend for MRF


The sell bias toward MRF Limited from analysts suggests caution, but investors are encouraged to consult a variety of market indicators before making decisions. This broader perspective will help mitigate risks and provide a clearer understanding of MRF Limited's potential in the current market.