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 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 1.645000
forwardPE 15.710114
debtToEquity 15.288000
earningsGrowth 0.371000
revenueGrowth 0.134000
grossMargins 0.373240
operatingMargins 0.107290
trailingEps 5725.280000
forwardEps 8246.280000

MRF Limited's current ratio is 1.645, showing the company's capacity to service its short-term debt through its cash reserves and current assets. This is a positive indicator of liquidity, suggesting MRF Limited has no trouble covering its short-term financial obligations.
MRF Limited's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
MRF's Debt-to-Equity ratio is low, indicating the company is not over-leveraged. This suggests a prudent approach to financing, with minimal dependence on debt, reducing the financial risk associated with high leverage, and signaling a stable financial outlook.
With earnings and revenue growth in positive territory, MRF is projected to expand its business. This strong financial performance suggests the company will continue to grow, as increased profitability and sales drive future success.
MRF's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that MRF is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

Price projections for MRF
Price projections for MRF

MRF Limited's price has frequently been situated near the lower end of analysts' projections. This trend indicates that the stock is struggling to meet expectations, which could signal a need for improvements in performance or investor confidence.

Recommendation changes over time:

Recommendations trend for MRF
Recommendations trend for MRF


Analysts have developed a sell bias for MRF, urging caution for investors. It's essential to base investment decisions on multiple market indicators to avoid hasty conclusions. Relying on a broader scope of information will provide a more accurate assessment of MRF's overall potential.