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 1.495000
forwardPE 22.767748
debtToEquity 20.397000
earningsGrowth 0.293000
revenueGrowth 0.113000
grossMargins 0.363260
operatingMargins 0.091290
trailingEps 4405.940000
forwardEps 5298.150000

MRF Limited's current ratio of 1.495 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that MRF Limited is financially well-prepared to meet its liabilities without difficulty.
MRF Limited's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
MRF's low Debt-to-Equity ratio shows that the company isn't heavily reliant on debt for financing. This implies a conservative approach to leveraging, reducing financial risk and demonstrating a solid financial foundation, which can enhance investor confidence in the company's long-term stability.
MRF's positive earnings and revenue growth suggest that the company is poised for business expansion. This financial strength indicates that MRF is expected to continue growing, with rising profits and sales contributing to its long-term success.
MRF Limited's forward EPS is higher than its trailing EPS, which signals that the company is expected to achieve greater profitability this financial year. This suggests improved earnings performance, indicating a positive outlook for MRF Limited's financial growth.

Price projections:

Price projections for MRF
Price projections for MRF

Price projections for MRF have steadily increased, reflecting growing optimism about the company's future. This trend suggests that analysts believe MRF is well-positioned for continued success.

Recommendation changes over time:

Recommendations trend for MRF
Recommendations trend for MRF


Analysts have developed a sell bias for MRF Limited, indicating potential caution for investors. However, it's important to base decisions on a broader set of market indicators to gain a more complete understanding of MRF Limited's future and avoid reacting solely to the analysts' negative sentiment.