MRF Ltd.
NSE: MRFMRF Ltd.: A 30-second snapshot
MRF (₹124,425) is India's largest tyre manufacturer by revenue, currently trading 13.7% below its 200-DMA and 24% below its 52-week high despite reporting a 38% YoY rise in Q4 FY26 net profit to ₹702 crore. The 5-year earnings CAGR of 37.1% and forward PE of 18.4 contrast with a debt-to-equity ratio of 15.29 and an ROE of 12.3% that has not exceeded 15% in any tracked year.
P/E
21.8
Forward P/E
18.4
ROE
+12.3%
Debt / Equity
15.29
Profit Margin
+7.8%
Div. Yield
+0.2%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
57/100
News
8 headlines · 6 positive · 0 negative
MRF Q4 Results: Profit rises 37% YoY to Rs 680 crore; co declares Rs 229 per share dividend - The Economic Times
The Economic Times
MRF Q4 result: Net profit rises 38% to ₹702 crore on strong sales growth - Business Standard
Business Standard
MRF Q4 net profit up 38% at ₹702 cr - BusinessLine
BusinessLine
MRF Dividend: Board approves joint-highest payout ever for shareholders; Details here - CNBC TV18
CNBC TV18
MRF Q4 Results: Profit Up 37%, Margin Expands; Dividend Declared — Check Record Date Update - NDTV Profit
NDTV Profit
Recent context
- ·MRF reported Q4 FY26 standalone net profit of ₹702 crore (up ~38% YoY) with margin expansion, driven by strong tyre sales volumes; multiple outlets reported the result as above consensus estimates.
- ·The board approved ₹229 per share as the final dividend for FY26 — reported as one of the highest per-share absolute dividends in the company's history, consistent with MRF's policy of large nominal payouts on its high face-value shares.
- ·Despite the strong earnings print, the stock is down 13.6% over the 3 months preceding the draft date, and RSI stands at 38.22 — price action has remained disconnected from the earnings improvement in the near term.
Strengths
- +5-year earnings CAGR of 37.1% and revenue CAGR of 13.4%, with Q4 FY26 net profit of ₹702 crore representing a 38% YoY increase — the most recent earnings cycle shows accelerating profitability.
- +Forward PE of 18.4 represents a compression from current trailing PE of 21.8; MRF ranks 2nd of 6 Auto sector peers on PE (lower = cheaper vs peers), trading at a meaningful discount to Eicher Motors (35.3x) and Bajaj Auto (27.0x).
- +Quality score of 59 places MRF 2nd of 6 in the Auto sector peer group, above Maruti Suzuki (31) and Tata Motors PV (16).
- +Board declared ₹229 per share dividend for FY26, described in coverage as a joint-highest payout on record; dividend yield stands at 0.19% relative to the current price.
Weaknesses
- −Debt-to-equity of 15.29 is exceptionally elevated for a non-financial manufacturer; FCF was positive in only 3 of the tracked years, and debt trend is flat — indicating the company has not materially deleveraged in the measurement window.
- −ROE of 12.3% has not crossed 15% in any tracked year (roeYearsAbove15 = 0), ranking 5th of 6 in the Auto sector peer group, well behind Bajaj Auto (28.1%) and Eicher Motors (23.8%).
- −Price is down 15.1% over 12 months and 13.6% over 3 months, trading below both the 50-DMA (₹130,378) and 200-DMA (₹144,239) — the stock has sustained a prolonged underperformance relative to its own moving averages.
- −Profit margin of 7.79% and consistency score of 54 reflect a business where earnings improvement has not yet translated into structurally higher capital returns, with ROE remaining in the mid-single-digit-to-low-double-digit range across tracked years.
Open questions
- ?Does the elevated D/E of 15.29 reflect structural capital requirements of the tyre manufacturing business, or has the company's balance sheet become more leveraged relative to its historical norms?
- ?Is the 5-year earnings CAGR of 37.1% being driven by operating leverage on a low-margin base, or does it reflect a sustainable improvement in MRF's pricing power and cost structure?
- ?Given that ROE has not exceeded 15% in any tracked year despite strong earnings growth, where is the incremental capital being deployed — and what is the return profile of that capital?
- ?How has MRF's market share in the Indian tyre industry evolved relative to domestic peers (CEAT, Apollo, Balkrishna), and does the company's premium pricing position remain intact in a competitive OEM + replacement demand environment?
Peer comparison: Auto
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MRF | MRF Ltd.You're viewing | 21.8 | +12.3% | 59 |
| Industry avg | across 5 peers | 27.4 | +16.8% | 44 |
| EICHERMOT | Eicher Motors Ltd. | 35.3 | +23.8% | 66 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 19.5 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 27.7 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹1,24,425.00
SMA 50
₹1,30,378.10
SMA 200
₹1,44,238.88
RSI (14)
38.2 (neutral)
From 52w high
-23.9%
1Y return
-15.1%
3M return
-13.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 15.29 is exceptionally elevated for a non-financial manufacturer; FCF was positive in only 3 of the tracked years, and the debt trend is flat, indicating limited deleveraging over the measurement period.
- mediumROE of 12.3% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0), ranking 5th of 6 in the Auto sector peer group; Bajaj Auto (28.1%) and M&M (18.8%) demonstrate meaningfully higher capital efficiency.
- mediumPrice at ₹124,425 is 4.6% below the 50-DMA (₹130,378) and 13.7% below the 200-DMA (₹144,239); stock is down 15.1% over 12 months and 24.0% from its 52-week high, with the nearest support level at ₹123,455 — approximately 0.8% below the current price.
- lowPeer priceChange1Y data is unavailable for all 5 comparables, preventing a relative price-performance ranking for the sector.
Cross-section contradictions
- Q4 FY26 net profit rose ~38% YoY to ₹702 crore and the 5-year earnings CAGR stands at 37.1%, yet the stock is down 15.1% over 12 months and 24% from the 52-week high — earnings improvement has not been reflected in price recovery over the measured period.
- News sentiment is positive (6 of 8 articles, 0 negative), driven by strong earnings and a record-high dividend declaration, while the technical picture shows price below both the 50-DMA and 200-DMA with RSI at 38.22.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days