Tyre Manufacturing Stock Jumps 10 per cent After Reporting Stellar Results & 30% Dividend
Kiran DSIJCategories: Mindshare, Trending
The stock is up by 30 per cent in 1 year and a whopping 330 per cent in 10 years.
On Friday, shares of MRF Ltd jumped 10.42 per cent to Rs 1,49,000 per share from its previous closing of Rs 1,34,933.55 per share. The shares of the company saw a Spurt in Volume by more than 10 times.
Madras Rubber Factory Limited (MRF Ltd) delivered a robust performance in the third quarter of FY26, with consolidated net profit surging 119 per cent year-on-year to Rs 692 crore. This significant growth was fueled by a 15 per cent increase in revenue from operations, which reached Rs 8,050.43 crore, supported by a strong 17.6 per cent rise in domestic automobile sales. The company's operational efficiency was equally impressive, as EBITDA jumped 68 per cent to Rs 1,399 crore, leading to a substantial margin expansion of 450 basis points to 17.4 per cent. These gains were achieved despite a one-time hit of Rs 77.2 crore related to increased liabilities from the implementation of new labour codes.
On a sequential basis, the tyre maker maintained its momentum with a 31.6 per cent increase in profit and a 9.1 per cent rise in revenue compared to the previous quarter. The net profit margin nearly doubled to 8.46 per cent, up from 4.44 per cent in the same period last year, reflecting improved pricing power and demand across the car and two-wheeler segments. In light of these strong results, MRF's board approved a second interim dividend of Rs 3 per share. The company has designated Friday, February 13, as the record date for shareholders eligible to receive this payout.
About the Company
MRF Limited, a leading Indian conglomerate, is renowned for its diverse range of products, including tyres, sports goods, paints and toys. As the parent company of the MRF Group, MRF has established a strong presence in the Indian market with a market share of 29 per cent in the tyre industry. Their flagship product, tyres, caters to a wide range of vehicles, from passenger cars to heavy-duty trucks. Beyond tyres, MRF has expanded into sports goods, offering a variety of options for athletes and enthusiasts. Additionally, their Funskool brand focuses on educational and entertaining puzzles, games and toys for children. With a commitment to quality and innovation, MRF has solidified its position as a trusted and respected brand in India.
The company has a market cap of Rs 63,000 crore with a PE ratio of 34, an ROE of 11 per cent and an ROCE of 14 per cent. The stock is up by 30 per cent in 1 year and a whopping 330 per cent in 10 years.
Disclaimer: The article is for informational purposes only and not investment advice.