MRF is trading higher by 4% to Rs 13,725, extending its over 7% rally in past two trading sessions, after reporting strong 40% year-on-year (yoy) jump in net profit at Rs 211 crore for the second quarter ended March 2013 due to lower raw material cost. Total income from operations however, fall 2.9% at Rs 2,906 crore on yoy basis.
The company’s EBITDA (earnings before interest, tax and amortization) margin has expanded by over 440bp to 15.3% due to fall in rubber prices to a two year low during the quarter. The raw material cost has declined by 8.4% to Rs 1,823 crore from Rs 1,990 crore during the recently concluded quarter.
Analyst at Angel Broking has maintain Accumulate rating on the stock with a target price of Rs 14,416.
Meanwhile, the stock has outperformed the market by surging 12% after announcing March quarter earnings on April 17, compared 2.4% rise in benchmark Sensex.
The stock is currently trading near to its record high of Rs 13,850 touched in January this year.
The company’s EBITDA (earnings before interest, tax and amortization) margin has expanded by over 440bp to 15.3% due to fall in rubber prices to a two year low during the quarter. The raw material cost has declined by 8.4% to Rs 1,823 crore from Rs 1,990 crore during the recently concluded quarter.
Analyst at Angel Broking has maintain Accumulate rating on the stock with a target price of Rs 14,416.
Meanwhile, the stock has outperformed the market by surging 12% after announcing March quarter earnings on April 17, compared 2.4% rise in benchmark Sensex.
The stock is currently trading near to its record high of Rs 13,850 touched in January this year.