MRF is trading higher by around 5% at Rs 11,700, also its record high on the Bombay Stock Exchange. The stock of tyre maker outperformed the market by gaining 16% in past one week compared to 3% rise in benchmark Sensex, after the announcement of September quarter earnings.
The company has reported 477 bps improvement in EBITDA or operating margin to 11.7% in September 2012 quarter over the previous year mainly due to fall in rubber prices. The net profit however, declined by 58% at Rs 165 crore on year-on-year because of adjustments pertaining to the change in depreciation norms by the company.
Analyst at Angel Broking expect a steady EBITDA margin going forward as rubber prices to be stable at these levels. The net profit however, to grow at a modest pace backed by a moderate growth in the net sales, he said.
The stock opened at Rs 11,260 and has seen huge trading activity on the counter. A combined 34,423 shares have already changed hands so far against an average sub 5,000 shares that were traded daily in past two weeks.
