MRF Tyres grips the road on margins but valuation tread wears thin

Twin wheels of raw material relief and pricing traction power a 26% stock climb

MRF Tyres — the largest listed tyre maker — has climbed 26 per cent over the past three months, making it the top performer in the Nifty Auto pack. Strong operating performance in the January-March quarter (Q4) of 2024-25 (FY25), expanding market share, falling raw material costs, and improved profitability have kept investor sentiment buoyant. But some brokerages say the stock’s run-up has made valuations expensive. 

MRF’s Q4 numbers outshone peers across most metrics. Revenue rose 12 per cent to just under ₹7,000 crore, in line with expectations. While two-wheeler and passenger vehicle original equipment manufacturer sales held steady, the