MRF hits record high

MRF jumped 10% to Rs 37,722 at 15:21 IST on BSE after the company issued a clarification on its capex plans.

The announcement was made after market hours on Tuesday, 2 December 2014.

Meanwhile, the S&P BSE Sensex was up 13.69 points or 0.05% at 28,457.70.

On BSE, so far 16,000 shares were traded in the counter as against average daily volume of 2,913 shares in the past one quarter.

The stock hit a high of Rs 37,722 so far during the day, which is a record high for the counter. The stock hit a low of Rs 34,293.15 so far during the day. The stock had hit a 52-week low of Rs 17,121.05 on 3 December 2013.

The stock had outperformed the market over the past one month till 2 December 2014, surging 9.49% compared with the Sensex's 2.07% rise. The scrip had also outperformed the market in past one quarter, jumping 34.01% as against Sensex's 5.27% rise.

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

MRF in a clarification with regard to news item titled "MRF embarks upon Rs 4000 crore expansion" said that the company in line with its long term strategy proposes to increase capacities across all its existing factories. These proposals are an ongoing process in the company as part of its capex plan over a period of time, for its eight factories situated at various places in the country, MRF said. The capex mentioned in the article is its broad estimation which will depend upon cash flows and review of the company's capex needs, MRF said. These proposals are currently tentative and as and when the same becomes definite, the company will keep the stock exchange(s) informed, if there are any material developments in compliance with clause 36 of the Listing Agreement, MRF said.

MRF's net profit jumped 72.1% to Rs 316.91 crore on 6.8% growth in net sales to Rs 3359.91 crore in Q4 September 2014 over Q4 September 2013.

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

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