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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.

SI Reporter  |  Mumbai 

Optimism exists, but there are also uncertainties: MRF CMD

Shares of hit a new high of Rs 78,234, up 2% on the 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 Sensex was up 4.3% during the same period.

So far in the calendar year 2018, 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, 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 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 in Rs at 01:07 pm.
*Yearwise returns in %

First Published: Thu, April 12 2018. 14:38 IST
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