MRF Ltd. (MRF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Indag Rubber

TVS Srichakra

Megamont

Apollo Tyres

Balkrishna Inds

MRF

CEAT

Goodyear India

Tolins Tyres

JK Tyre & Indust

Modi Rubber

Why is MRF Ltd. ?

Flat results in Jun 26

PAT(Q) At Rs 495.35 cr has Fallen at -19.8% (vs previous 4Q average)
PBDIT(Q) Lowest at Rs 990.63 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 11.77%

Below par performance in long term as well as near term

Along with generating -16.80% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Rubber Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is MRF for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

MRF

-16.73%

-0.73

23.16%

Sensex

-9.4%

-0.70

13.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.26%

EBIT Growth (5y)

9.50%

EBIT to Interest (avg)

6.22

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

1.25

Tax Ratio

24.40%

Dividend Payout Ratio

4.11%

Pledged Shares

0.09%

Institutional Holding

29.52%

ROCE (avg)

11.96%

ROE (avg)

8.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.52

EV to EBIT

16.69

EV to EBITDA

10.55

EV to Capital Employed

2.69

EV to Sales

1.60

PEG Ratio

0.58

Dividend Yield

0.19%

ROCE (Latest)

16.62%

ROE (Latest)

11.79%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

PAT(9M)

At Rs 1,939.93 cr has Grown at 46.10%

OPERATING CF(Y)

Highest at Rs 4,638.95 Cr

DPS(Y)

Highest at Rs 235.00

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 2,182.72 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.15 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.80 times

NET SALES(Q)

Highest at Rs 8,415.50 cr

-10What is not working for the Company

PAT(Q)

At Rs 495.35 cr has Fallen at -19.8% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 990.63 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 11.77%

PBT LESS OI(Q)

Lowest at Rs 454.63 cr.

EPS(Q)

Lowest at Rs 1,168.28

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Here's what is working for MRF

Operating Cash Flow - Annually

Highest at Rs 4,638.95 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 8,415.50 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 2,182.72 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.15 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 8.80 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 235.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for MRF

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 454.63 cr has Fallen at -34.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 695.29 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 495.35 cr has Fallen at -19.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 618.01 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 990.63 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 11.77%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 454.63 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1,168.28

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 195.06 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income