MRF share hits the Rs 1 lakh mark today – History & Achievements

MRF Ltd created history as its share price hit Rs 1,00,000 for the first time ever. MRF stands for Madras Rubber Factory, the parent company of MRF Group and a leading tyre manufacturer, and achieves a significant milestone by reaching Rs 1,00,000 today. The share opened at Rs 99,500, showing a 0.56% increase compared to the previous day’s closing price of Rs 98,939 on BSE.

Its 52-week high and low stand at Rs 100,300 and Rs 65,900, respectively. With a market capitalisation of Rs 42,411.43 Crore, the company has witnessed an impressive return of over 45% in the past year and 57% over the last three years

Many people often wonder why the share price of MRF Ltd is so high. Well, the reason behind its expensive share price is primarily due to the limited number of shares available in the market. Additionally, MRF has never undergone a share split to decrease the share price. The equity capital of the company is Rs 4.24 Crore and it is still the same.

MRF shares hold the distinction of having the highest denomination among all the companies listed in India.

Let’s explore its journey at each successive 10,000 mark.

In 2012, the MRF share reached the significant milestone of crossing the four-digit mark, touching Rs 10,000 for the first time. Within a span of just two years, its price doubled and reached Rs 20,000. Then, in September 2016, the share surged to Rs 50,000 mark for the first time. From that point, it took approximately seven years to achieve the remarkable milestone of Rs 1,00,000.

With the Face value of Rs 10 only a share of MRF has created a new history today and is the only company to register this event in Indian history.

In FY23, the company’s revenue surged by 19% from Rs 19317 Crore to Rs 23008 Crore, the operating profit was Rs 2389 Crore with an operating margin of 10%. The trend of the operating margins in the last two years is falling and when we compare the margins from FY12 it was 11% whereas the current margins are still 10%. The net profit of the company is Rs 769 Crore, 15% up from last year’s profit is Rs 669 Crore. The company’s debt on its balance sheet is Rs 3014 Crore with a debt to equity of 0.20 times. The dividend yield is 0.15% if we calculate the dividend amount in value terms with the share price of Rs 1 Lakh then it would be Rs 150 only. Its ROCE and ROE are 7.94% and 5.35%.

In FY23, MRF witnessed a notable 19% increase in revenue, rising from Rs 19,317 Crore to Rs 23,008 Crore. The company’s operating profit stood at Rs 2,389 Crore, yielding an operating margin of 10%. Notably, the trend for operating margins has been declining over the past two years, when we compare the margins from FY12 it was 11%, while the current margin still remains at 10%. The net profit for the year amounted to Rs 769 Crore, exhibiting a 15% growth from the previous year’s profit of Rs 669 Crore.

Regarding the company’s financial structure, MRF carries a debt of Rs 3,014 Crore on the balance sheet, with a debt-to-equity ratio of 0.20 times. The dividend yield stands at 0.15%. If we calculate the dividend amount based on the share price of Rs 1 Lakh, it equates to Rs 150 only. The ROCE and ROE are recorded at 7.94% and 5.35%, respectively.

As per the latest update, the promoter’s holding in the company stands at 27.85%, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 18.05% and 11.65% respectively. Surprisingly, the public holds a higher percentage of shares in the company compared to other market participants, accounting for 42.45%.

In conclusion, it is remarkable to observe that nobody could have predicted in the earlier days that MRF’s share price would reach such significant milestones. It has the potential to grow more and create another history in the future.