MRF jumps after signing MoU with Tamil Nadu government

MRF rose 1.45% to Rs 41,230 at 10:20 IST on BSE after the company said it signed a memorandum of understanding with the Government of Tamil Nadu.

The announcement was made after trading hours yesterday, 10 September 2015.

Meanwhile, the BSE Sensex was up 156.99 points, or 0.61%, to 25,779.16.

On BSE, so far 674 shares were traded in the counter, compared with an average volume of 2,736 shares in the past one quarter.

The stock hit a high of Rs 41,499 and a low of Rs 40,900.05 so far during the day. The stock hit a record high of Rs 46,405.35 on 5 August 2015. The stock hit a 52-week low of Rs 29,850.50 on 26 September 2014.

The stock had outperformed the market over the past one month till 10 September 2015, falling 8.65% compared with 8.82% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 22% as against Sensex's 4.54% decline.

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

As per the memorandum of understanding (MoU), MRF will invest not less than Rs 4500 crore in its plants at Perambalur and Arakonam in Tamil Nadu over a period of 7 years.

MRF's net profit rose 94.07% to Rs 446.81 crore on 6% rise in net sales to Rs 3535.99 crore in Q3 June 2015 over Q3 June 2014.

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

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