MRF, India’s largest tyre producer, increased its standalone profit by more than thrice to Rs 508 crore in the December quarter (Q3FY24), up from Rs 169 crore in the same period a year earlier. Profit growth was driven by increased sales of two-wheelers.
The sales of the Chennai-based firm increased by more than 9% year on year to Rs 6,048 crore in Q3FY24, up from Rs 5,535 crore in the same quarter last year.
In the December quarter, the tyre manufacturer’s profits before interest, taxes, depreciation, and amortization (EBITDA), generally known as operating profit, increased by 89.5 percent to Rs 1,040 crore. Meanwhile, its margin increased by 730 basis points (bps) to 17.2%, up from 9.9% in the same quarter a year earlier.
The Board of Directors also declared the second interim dividend of Rs 3 per share for the fiscal year 2024.
“The firm has designated Wednesday, February 21, 2024 as the Record Date to pay the second interim dividend. The declared dividend will be paid on or after Monday, March 4, 2024,” MRF stated in an exchange filing.
Share Price of MRF
MRF Ltd’s shares traded over 2.5 percent to Rs 1,38,884.95 per share on the BSE in the afternoon of Friday, February 9, after the tyremaker reported its December quarter (Q3 FY24) results.
At roughly the same time, its market capitalization was Rs 59,030.75 crore. MRF reported a standalone net profit of Rs 508 crore for the October-December period on Friday, a nearly threefold rise from the same quarter last year.
What does the Analyst say about MRF?
Following the recent data, the six analysts tracking MRF now expect sales of ₹269.8 billion in 2025. If satisfied, this represents a 9.4% increase in income over the previous 12 months. Statutory profits per share are expected to increase 11% to ₹5,318. Analysts projected ₹266.7b in revenue and ₹5,151 in profits per share (EPS) for 2025 before to this report. According to their updated earnings per share predictions, the analysts appear to be more optimistic about the firm.
Analysts have raised their price estimates by 8.4% to ₹112,217, after the results improvement. There is another approach to thinking about price goals, and that is to consider the range of price targets proposed by analysts, because a large range of estimates may indicate a variety of possible outcomes for the firm.
The most optimistic MRF analyst has a price objective of ₹149,209 per share, while the most pessimistic estimates ₹90,000. This demonstrates that there is still some difference in projections, but experts do not appear to be completely divided on the stock, as if it may be a success or failure scenario.
MRF’s revenue growth would decrease significantly, with sales predicted to rise at a 7.4% annual rate until the end of 2025.
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