MRF Ltd.
Auto · NSE
52-week range
₹1,23,455 – ₹1,63,594
From 52w high
-20.3%
RSI (14)
44.3
vs SMA 50 / 200
↓ 50 · ↓ 200
MRF, India's largest tyre manufacturer by market capitalisation, trades at ₹1,30,330 with a trailing PE of 22.8 and a forward PE of 17.6, reflecting an earnings recovery after 37% profit growth in Q4 FY26. The stock is 20.3% below its 52-week high, trading below both its 50-DMA (₹1,33,715) and 200-DMA (₹1,45,737) despite the recent results beat. Revenue has grown at 13.4% over 5 years while earnings have compounded at 37.1%, with a ₹229 per share final dividend declared for FY26.
- ✓5-year earnings CAGR of 37.1% significantly outpaces the 5-year revenue CAGR of 13.4%, indicating operating leverage and margin expansion over the cycle.
- ✓Q4 FY26 net profit of ₹680 crore represents 37% YoY growth with margin expansion, and the ₹229 per share final dividend is described as the joint-highest payout in company history.
- ✓Trailing PE of 22.8 is the second-lowest among the 6 Auto sector peers tracked (M&M at 21.3 is the only lower), and the forward PE of 17.6 implies the market is pricing in continued earnings improvement.
- ✓Quality score of 59 ranks MRF 2nd of 6 in the Auto peer group, above Bajaj Auto (55), M&M (52), TMPV (46), and Maruti (31).
- ✗ROE of 12.3% has not crossed 15% in any tracked year, ranking 4th of 6 peers and well below Bajaj Auto (28.1%) and M&M (18.8%), suggesting capital is deployed less efficiently relative to key sector peers.
- ✗Price is below both the 50-DMA (₹1,33,715) and 200-DMA (₹1,45,737) and is 20.3% off the 52-week high, with 1-year and 3-month price changes of -3.3% and -3.4% respectively — the earnings recovery has not yet been reflected in price over these periods.
- ✗FCF was positive in only 3 of tracked years, and the debt-to-equity of 15.29 has shown a flat trend with no visible deleveraging, pointing to persistent capital intensity in the business model.
- ✗Consistency score of 54 and a profit margin of 7.79% reflect the cyclical, input-cost-sensitive nature of tyre manufacturing, where rubber and crude oil price swings can compress margins quickly.
- ·MRF reported Q4 FY26 net profit of ₹680 crore, up 37% YoY, with the board declaring a ₹229 per share final dividend — described across multiple outlets as the joint-highest in company history.
- ·All 8 recent news items relate to the Q4 results announcement; sentiment is positive (6 positive, 2 neutral, 0 negative), with coverage from ET, NDTV Profit, CNBC TV18, and Groww.
- ·Mean analyst rating is 3.1 across 10 analysts on a 1–5 scale (lower = more constructive), indicating a more divided or cautious coverage base compared to peers with ratings closer to 1–2.
- ?Does the flat debt trend and FCF variability reflect a structural capital intensity in tyre manufacturing, or is there a near-term catalyst that could shift the FCF profile?
- ?How has MRF's ROE trajectory compared to Bajaj Auto and M&M over the last 5 years, and what accounts for the gap given MRF's stronger earnings CAGR?
- ?Given the forward PE of 17.6 versus the trailing PE of 22.8, what level of earnings growth is already reflected in the current price relative to the historical earnings cycle?
- ?Why has the stock remained below the 200-DMA for an extended period despite a 37% profit increase in the latest quarter — what macro or sector-level factors might explain the divergence?
PE
22.8
Forward PE
17.6
ROE
+12.3%
Profit margin
+7.8%
D/E
15.29
Dividend yield
+0.2%
Quality score
59/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.