MRF Ltd. Hits 52-Week Low Amid Declining Profit and Rising Interest Expenses
MRF Ltd., a key player in the Tyres & Allied industry, has reached a new 52-week low, reflecting a challenging year with a 28.70% decline in stock value. The company reported a 35.2% drop in profit after tax for the December quarter, while maintaining a low debt-to-equity ratio and significant market capitalization.
MRF Ltd., a prominent player in the Tyres & Allied industry, has experienced significant activity today, reaching a new 52-week low of Rs. 100,500. This decline marks a notable performance dip, as the stock has underperformed its sector by 0.29%. After two consecutive days of decline, MRF has shown a slight gain, indicating a potential trend reversal.The stock's performance over the past year has been challenging, with a decline of 28.70%, contrasting sharply with the Sensex's marginal drop of 0.24%. Key financial metrics reveal a decrease in profit after tax for the December quarter, falling by 35.2% to Rs. 315.45 crore. Additionally, the operating profit to interest ratio has reached a low of 8.91 times, while interest expenses have surged to Rs. 93.65 crore.
Despite these challenges, MRF maintains a low debt-to-equity ratio of 0.02 and an attractive return on equity of 11. The company holds a significant market cap of Rs. 43,526 crore, making it the second-largest in its sector, with annual sales accounting for 28.29% of the industry.
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