MRF
MRF is a Rubber Factory company, who announced dividend for each share you hold, you will receive first dividend reward is 3 rupees it is interim 2 dividend. MRF Share price is 1,11,036 rupees approximate. Buy this share before 14 February, 2025. read this article for more information about MRF.
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MRF
MRF (Madras Rubber Factory Limited) is the parent company of the MRF Group. The Co is engaged in the business of manufacturing tyres.
Financial Performance of MRF
The financial performance of the company for three consecutive quarters -December 2024, September 2024, and June 2024 - is summarized as follows.
In December 2024, the total revenue was 7300Cr, while gross profit was 6533Cr. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at 13632Cr, and the net profit was 7395Cr.
In September 2024, the total revenue was slightly lower at 2410Cr, with a gross profit of 2571Cr. EBITDA during this quarter was 2934Cr, and the net profit was 9396Cr.
For June 2024, the total revenue was 6266Cr, gross profit was 7149Cr, EBITDA reached 1325Cr, and the net profit was 4347Cr.
The table below presents the data for better clarity:
Quarters | Dec 24 | Sep 24 | Jun 24 |
Total Revenue | 7300 | 2410 | 6266 |
Gross Profit | 6533 | 2571 | 7149 |
EBITDA | 13632 | 2934 | 1325 |
Net Profit | 7395 | 9396 | 4347 |
This data indicates stable financial performance across the three quarters, with consistent gross profit and slight variations in total revenue, EBITDA, and net profit.
Past Performance
The company’s performance over the last three years is summarized below, highlighting growth in key metrics:
Sales Growth: - Over three years, sales have grown by 53%, indicating strong business performance and revenue expansion.
EBITDA Growth: - The company achieved a 45% growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), reflecting improved operational efficiency.
Net Profit Growth: - Net profit grew by 61% during this period, showcasing the company's ability to increase profitability despite market challenges.
Stock Price Growth: - The stock price experienced a 69% increase, reflecting moderate investor confidence and market performance.
This data highlights the company's steady growth across key financial metrics, driven by effective strategies and consistent performance.
The data is presented in table form below for clarity:
Metric | 3 Years |
Sales Growth | 53 |
EBITDA Growth | 45 |
Net Profit Growth | 61 |
Stock Price Growth | 69 |
Assets and Liabilities
Assets
Category | Amount |
Long Term & Other Assets | ₹6839 Cr |
Physical Assets | ₹12047 Cr |
Inventory | ₹4468 Cr |
Receivables | ₹2911 Cr |
Cash & Short Term | ₹406 Cr |
Liabilities + Equity
Category | Amount |
Equity | ₹16703 Cr |
Other Liabilities | ₹4931 Cr |
Debt | ₹2156Cr |
Accounts Payable | ₹2652 Cr |
Shareholding Pattern
As of September 24th, the shareholding pattern of the company reveals how ownership is distributed among different types of investors. The promoters, or company founders and major stakeholders, hold the largest share, owning 27% of the company. This large ownership gives them substantial control over the company's decisions and operations.
Foreign Institutional Investors (FIIs) own 18% of the company's shares. These are large investors, typically from overseas, such as international banks, pension funds, and mutual funds. Their stake indicates that the company has attracted significant interest from global investors.
Domestic Institutional Investors (DIIs), which include local banks, insurance companies, and other investment institutions, own 11% of the company’s shares. This shows strong local support for the company from institutional investors.
The remaining 42% of the shares are held by the public, which includes individual retail investors and other smaller shareholders. This portion is comparatively small, meaning that individual investors have less influence over the company's decisions compared to promoters and institutional investors.
Shareholding Percentage | Category |
27 | Promoters |
18 | FII |
11 | DII |
42 | Public |
Overall, the shareholding pattern highlights the dominance of the promoters in controlling the company, with institutional investors playing a significant role in ownership as well.
Market Cap
Metric | Value |
Market Cap (Cr.) | 47,874 |
Sales in last 12 months (Cr.) | 27,427 |
Sector | Tyres |
Book Value per share | 41,658 |
Market Capitalization 47,874 Crore
This figure represents the total market value of the company's outstanding shares. It is calculated by multiplying the company's current share price by the total number of shares outstanding.
Sales in Last 12 Months 27,427 Crore
This metric indicates the company's revenue generated over the past year. It provides insight into the company's sales performance and its ability to generate income.
Sector: Tyres
This information classifies the company's industry as belonging to Tyres company. This categorization helps investors understand the company's competitive landscape and potential growth drivers within its specific market.
Book Value per Share: 41,658
Book value per share represents the company's net assets per share. It is calculated by dividing the company's total assets minus total liabilities by the total number of outstanding shares. This metric gives investors an idea of the company's intrinsic value and financial health.
The three common financial ratios used to assess a company's valuation: the Price-to-Earnings Ratio (P/E), the Price-to-Book Ratio (P/B), and the Price-to-Sales Ratio (P/S).
The P/E ratio, which is 27x in this case, measures the market value of a company's stock relative to its earnings per share. A higher P/E ratio suggests that investors are willing to pay a premium for the company's future earnings potential.
The P/B ratio, at 2x, compares the market value of a company's stock to its book value per share (assets minus liabilities). A higher P/B ratio indicates that the market values the company's intangible assets (like brand value, intellectual property) more than its tangible assets.
The P/S ratio, which is 1x, evaluates the market value of a company's stock relative to its annual revenue. A higher P/S ratio might suggest that investors expect strong future revenue growth or are willing to pay a premium for the company's market share.
Financial Ratio
1. Return on Equity (ROE): 7.03% (3-year average)
· This shows how well the company is using its equity (owner's money) to generate profits. A high ROE is a good sign of strong profitability.
2. Return on Capital Employed (ROCE): 10.29% (3-year average)
· This ratio tells us how efficiently the company is using both its debt and equity to make profits. A high ROCE suggests the company is making good use of its resources.
3.Debt-to-Equity Ratio: 0.21x (3-year average)
· This measures the company’s debt compared to its equity. A low ratio means the company is not overly reliant on debt, which reduces financial risk.
4. Interest Coverage Ratio: 5.15x (3-year average)
· This shows how easily the company can pay its interest on debt. A high ratio indicates that the company is in a strong financial position and can easily meet its debt obligations.