MRF gains on bargain hunting

MRF rose 2.22% to Rs 22,365.15 at 12:02 IST on BSE on bargain hunting after the stock tumbled 7.87% in the preceding two trading sessions to Rs 21,879.50 on 22 April 2014, from a recent high of Rs 23,748.90 on 17 April 2014.

Meanwhile, the BSE Sensex was 123.93 points, or 0.54%, to 22,882.30.

On BSE, so far 2,706 shares were traded in the counter, compared with an average volume of 2,041 shares in the past one quarter.

The stock hit a high of Rs 22,524.90 and a low of Rs 21,675.15 so far during the day. The stock hit a 52-week high of Rs 24,500 on 7 April 2014. The stock hit a 52-week low of Rs 12,052 on 8 July 2013.

The stock had underperformed the market over the past one month till 22 April 2014, sliding 2.77% compared with the Sensex's 4.61% rise. The scrip had, however, outperformed the market in past one quarter, rising 9.59% as against Sensex's 6.66% rise.

The mid-cap company has an equity capital of Rs 4.24 crore. Face value per share is Rs 10.

MRF's net profit declined 18.86% to Rs 170.87 crore on 13.66% growth in total income to Rs 3309.66 crore in Q2 March 2014 over Q2 March 2013. The Q2 result was announced during trading hours on Tuesday, 22 April 2014. Shares of MRF slumped 7.14% to Rs 21,879.50 on Tuesday.

The company's operating profit margin (OPM) declined sharply to 12.5% in Q2 March 2014, from 15.28% in Q2 March 2013. On sequential basis, the OPM declined from 13.08% in Q1 December 2013.

MRF manufactures the largest range of tyres in India and exports to various countries worldwide.

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