MRF shares hit new high of Rs 78,234 per share

So far in the calendar year 2018, MRF shares have beat the market by gaining 8% against 0.1% decline in the S&P BSE Sensex.

Shares of MRF hit a new high of Rs 78,234, up 2% on the BSE. The stock of tyre company gained 13% or Rs 9,045 from its recent low of Rs 69,189 on March 23, 2018. On comparison, the S&P BSE Sensex was up 4.3% during the same period.

So far in the calendar year 2018, MRF shares have beat the market by gaining 8% against 0.05% decline in the benchmark index. In past nine consecutive calendar years, the stock had outperformed the market. Since January 2008, MRF zoomed 3,791% from Rs 2,003 against 252% rise in the Sensex.

Analysts at Elara Capital reiterate ‘Accumulate’ on MRF with a target price of Rs 80,543 based on 16x (unchanged) FY20E EPS, given its market leadership, strong distribution network and healthy balance sheet compared to peers.

“MRF’s key strength of its exclusive distribution network is evident from its smooth transition to GST compared to its peers. Further, there has been an increased focus on expansion of distribution network of MRF in recent quarters which would drive its revenue growth in coming years. MRF has now increased supplies of its 2W tyres which have been in shortage in recent years as is now flexing its brand muscle for market share gains,” the brokerage firm said in Q3 results update.

Analyst at Anand Rathi Share and Stock Brokers has ‘buy’ rating on MRF with a target price of Rs 80,045 as the brokerage firm expects better revenue growth and stable rubber prices augur well for MRF’s margin expansion in coming quarters.

Government announced increase in customs duty on truck and bus radials (TBR) imports from 10% to 15% in union budget FY19 which augurs well for tyre companies. While incremental benefit will be limited owing to already low imports post Goods and Services Tax (GST) and Anti-dumping duty (ADD); it gives further confidence in sustained depressed Chinese imports, it added.

Date	MRF	Sensex	MRF*	Sensex*
12/04/2018	78234	34041	8.12	-0.05
31/12/2017	72357	34057	47.95	27.91
31/12/2016	48906	26626	22.64	1.95
31/12/2015	39878	26118	5.17	-5.03
31/12/2014	37919	27499	95.82	29.89
31/12/2013	19364	21171	51.06	8.98
31/12/2012	12819	19427	83.67	25.70
31/12/2011	6979	15455	-3.10	-24.64
31/12/2010	7203	20509	19.13	17.43
31/12/2009	6046	17465	201.82	81.03
31/12/2008	2003	9647	-72.16	-52.45
31/12/2007	7196	20287	67.62	47.15
31/12/2006	4293	13787	56.20	46.70
31/12/2005	2748	9398	13.57	42.33
31/12/2004	2420	6603	5.17	13.08
31/12/2003	2301	5839	155.68	72.89
31/12/2002	900	3377	26.70	3.52
31/12/2001	710	3262	-41.64	-17.87
31/12/2000	1217	3972	-44.37	-20.65
31/12/1999	2188	5006	52.99	63.83
31/12/1998	1430	3055	-26.03	-16.50
31/12/1997	1933	3659	-32.17	18.60
31/12/1996	2850	3085	62.86	-0.81
31/12/1995	1750	3110	-25.53	-20.79
MRF price on BSE in Rs at 01:07 pm.
*Yearwise returns in %