MRF share price falls Rs 1760 apiece; Motilal Oswal downgrades to Sell - check target
MRF Dividend 2023: The company has declared a second interim dividend of Rs 3 per equity share to its shareholders for FY23.
MRF Share Price NSE: Shares of MRF fell by Rs 1760 apiece during Tuesday trading session. The scrip touched day's low at Rs 87,500, down by more than 1 per cent from previous close of Rs 88,803.90. Around 2 PM, it quoted Rs 88,348 apiece on NSE.
Domestic brokerage firm Motilal Oswal has downgraded rating to Sell on MRF with a target price of Rs 75,000 in its research report dated February 9. It said that the company's valuation does not capture dilution of its competitive positioning despite posting in-line Q3 results.
"MRF’s competitive positioning within the sector has weakened over the past few years, which is also getting reflected in the dilution of pricing power in the PCR and TBR segments. This, coupled with the impact of capex to be carried out, should result in limited expansion in return ratios," the research report said.
The tyre maker's current valuation at 21.5x is almost at 100 per cent premium to its peers, despite weakening competitive positioning as well as similar capital efficiencies for MRF, it said.
MRF, which is the largest manufacturer of tyres in India, reported a 17 per cent rise in consolidated net profit from continuing operations at Rs 174.83 crore for the third quarter.
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MRF Share Price History
MRF shares have yielded a positive return of 33 per cent in the past one year as against 6.55 per cent rise in the benchmark index Nifty50. At current market levels, MRF has a market cap of 37.47 thousand crore.
MRF Dividend 2023, MRF Dividend 2023 Record Date
The company has declared a second interim dividend of Rs 3 per equity share to its shareholders for FY23. MRF dividend record date is February 21.
MRF Q3 Results
The Chennai headquartered company had posted a consolidated net profit from continuing operations at Rs 149.39 crore in the same quarter last fiscal, MRF Ltd said in a regulatory filing.
Consolidated revenue from operations during the period under review stood at Rs 5,644.55 crore, as against Rs 4,920.13 crore in the year-ago period, it added.
Total expenses were higher at Rs 5,484.72 crore in the third quarter, as compared to Rs 4,787.33 crore in the corresponding period a year ago.
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