Mumbai: Indian tire manufacturer MRF created history on Tuesday as it became the first Indian shares to reach the impressive milestone of Rs 1 lakh. During the early trading session, MRF shares gained over 1.3% to hit the six-digit mark, making a significant mark on Dalal Street.
MRF shares briefly touched Rs 1,00,300 before partially retracting their gains. MRFs market capitalization stood at approximately Rs 42,500 crore as of the latest update. The previous day MRF shares closed at Rs 98,939.70.
Over the past year. MRFs’ shares have risen by over 45%, and they are currently up by 52% from their 52-week low of Rs 65,900. The stock has delivered an overall return of 82% in just three years.
Regarding recent financial results from the company, MRF saw a substantial spike in consolidated net profit for Q1 of FY23 by approximately 86%. This number reached a staggering Rs 313.5 crore compared to Rs 168.5 crore for a similar period last year. As a result of this success, MRF announced a dividend of Rs169 per share for its investors. The fourth quarter revenue from MRFs core operations rose by around 10% to Rs 5,842 crore, while other income increased marginally to Rs 70 crore.
Currently, trading at approximately a price-to-earnings multiple averaging around 55 times and a price-to-book value multiple averaging around 2.89 times will be worth keeping an eye on going forward. It is worth noting that the promoters currently hold about 28% stake in the company while public shareholders own 72%.
While some analysts recommend selling the stock, technical analysts see a different picture. They view MRF as being in a multi-year bull run, with potential for further upside. The stock’s resistance levels are expected to be tested at Rs 1,02,795, and a close above this level could lead to significant gains, with a target projected at Rs 1,47,725.
Investors are advised to hold their positions and consider buying opportunities around the Rs 89,000-90,000 levels, according to technical analyst Sujit Deodhar.