MRF Limited (MRF) AI Stock Analysis

• Market Cap: ₹530.41B
• Dividend Yield: 0.15%
• Average Volume (3M): 353.00
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.01
• Revenue Growth: 9.56%
• EPS Growth: -4.82%
• Country: IN
• Employees: 19,209
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1750.50
• Shares Outstanding: 4,241,143
• 10 Day Avg. Volume: 287
• 30 Day Avg. Volume: 353
• PEG Ratio: -2.52
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 85.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5,579.72
• Revenue Forecast (FY): ₹305.38B

• Rating: 67 Neutral
• Price Target: ₹135,693 ▼(-9.82% Downside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial performance (revenue growth and a robust, low-leverage balance sheet). This is tempered by weaker technical signals (negative MACD and trading below key longer-term moving averages) and only fair valuation support (P/E ~25.7 with a very low dividend yield).

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion over multiple years indicates durable demand across OEM and replacement channels, supporting scale advantages and revenue diversification. That trajectory underpins medium-term investment capacity and resilience to cyclical automotive demand shifts.

Conservative Leverage / Strong Balance Sheet

Low leverage and a healthy equity ratio provide financial flexibility to fund capex, absorb downturns, and pursue strategic investments without heavy refinancing risk. This conservatism supports long-term solvency and sustained capacity to serve OEM and replacement markets.

Reliable Operating Cash Generation

Consistent operating cash inflows indicate core operations convert earnings into liquid resources, enabling reinvestment, working-capital support, and potential shareholder returns. Persistent OCF strength underpins capital allocation options across cycles.

Negative Factors

Compression in Operating Margins

Falling operating margins weaken the firm's ability to absorb raw-material cost swings and competitive pricing pressure. Persistently lower margins reduce reinvestment capacity and return on capital, raising execution risk for sustaining growth and profitability over the medium term.

Volatile Free Cash Flow

Inconsistent free cash flow constrains predictable funding for capex, dividends, or strategic initiatives without tapping reserves or increasing leverage. Over time this volatility can limit reinvestment discipline and reduce optionality when pursuing capacity or product investments.

Portion of Assets Tied to Liabilities

High asset encumbrance by liabilities can restrict liquidity and operational flexibility despite low headline leverage. This structural constraint may hinder rapid responses to supply shocks, margin stress, or opportunistic investments, increasing systemic operational risk.

MRF Limited Business Overview & Revenue Model

Company Description

MRF Limited, together with its subsidiaries, manufactures, sells, and trades in rubber products in India and internationally. The company provides rubber products, such as tires, tubes, flaps, and tread rubber; tires for trucks, farm vehicles, LCVs, SCVs, MCVs, three wheelers, pick up, two wheelers, passenger cars, and OTRs; and manufactures specialty coatings. It is also involved in the paints and coats, toys, motorsports, and cricket training businesses. In addition, the company operates MRF T&S, MRF TireTok, MRF Tyredrome, MRF FASST, MRF Musclezone, and shops that provide computerized nitrogen inflation, tubeless repair, wheel alignment, wheel balancing and tyre changing, robotic wheel alignment, vehicle safety test lane, diagnostic wheel balancing, A/C recovery and recharging, headlight alignment, nitrogen generation, special two-wheeler tyre changing, credit card facility, wheels removal and refitment, and tyre mounting and de-mounting services. MRF Limited sells its products through approximately 5,000 dealer networks. The company was founded in 1946 and is based in Chennai, India.

How the Company Makes Money

MRF primarily makes money by manufacturing and selling tyres, which are sold through two main channels: (1) OEM supply, where tyres are supplied to vehicle manufacturers for fitment on new vehicles, and (2) the replacement market, where tyres are sold to end customers via an extensive dealer/distributor network and retail outlets. Revenue is largely driven by product mix (e.g., tyres for passenger vehicles, commercial vehicles, two-wheelers, and specialty segments), pricing relative to raw-material input costs (notably natural rubber and other petrochemical derivatives), volumes, and brand strength in the replacement segment. In addition to tyres, MRF earns revenue from related rubber-based products (and allied offerings under its broader rubber manufacturing capabilities), which provide supplementary income alongside the core tyre business. Profitability and cash generation are materially influenced by input-cost cycles, capacity utilization, distribution reach, and demand conditions in automotive and freight activity. Significant partnership details beyond OEM customer relationships are null.

MRF Limited Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth and a solid, conservatively leveraged balance sheet. Offsetting this, profitability margins weakened in 2025 and free cash flow has been volatile with a recent decline, indicating execution and investment-return risks.

Income Statement

MRF Limited's revenue has shown consistent growth, increasing from 160,766.7M in 2021 to 281,531.8M in 2025. The gross profit margin remained stable, with a slight increase in recent years, indicating efficient cost management. However, the net profit margin has fluctuated due to varied net income figures, with a noticeable decline in EBIT and EBITDA margins in 2025, which may suggest increased operational costs or pricing pressures.

Balance Sheet

The company's balance sheet is robust, with a healthy equity ratio indicating strong shareholder equity backing. The debt-to-equity ratio is consistently low, reflecting conservative leverage practices. However, a significant portion of assets is tied up in liabilities, which could limit flexibility in adverse market conditions. Return on equity shows a positive trend, driven by growing net income relative to stockholder equity.

Cash Flow

Cash flows are positive, with operating cash flow consistently exceeding net income, suggesting effective cash generation from operations. However, free cash flow has been volatile, reflecting varying levels of capital expenditure. The recent reduction in free cash flow may indicate increased investment activities, which could either return future benefits or pose liquidity risks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	291.48B	281.71B	251.74B	230.15B	193.32B	161.85B
Gross Profit	100.62B	99.20B	97.91B	72.98B	64.95B	66.46B
EBITDA	42.81B	40.17B	41.95B	23.48B	20.70B	29.52B
Net Income	18.54B	18.69B	20.81B	7.69B	6.69B	12.77B
Balance Sheet
Total Assets	303.20B	295.67B	268.49B	243.69B	230.60B	225.82B
Cash, Cash Equivalents and Short-Term Investments	47.54B	39.28B	27.47B	22.23B	34.05B	49.11B
Total Debt	36.31B	37.71B	28.21B	30.14B	32.29B	23.88B
Total Liabilities	108.79B	110.78B	101.46B	96.62B	90.28B	91.68B
Stockholders Equity	194.41B	184.88B	167.03B	147.08B	140.32B	134.14B
Cash Flow
Free Cash Flow	12.52B	5.60B	11.38B	-5.36B	-22.85B	34.72B
Operating Cash Flow	18.70B	18.68B	33.01B	27.55B	-5.78B	43.25B
Investing Cash Flow	-15.94B	-20.82B	-23.79B	-19.23B	1.65B	-50.86B
Financing Cash Flow	-4.51B	2.82B	-8.68B	-8.40B	4.24B	-2.50B

MRF Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 150467.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MRF, the sentiment is Negative. The current price of 150467.6 is above the 20-day moving average (MA) of 136898.89, above the 50-day MA of 140600.67, and above the 200-day MA of 147184.22, indicating a bearish trend. The MACD of -3995.02 indicates Positive momentum. The RSI at 30.09 is Neutral, neither overbought nor oversold. The STOCH value of 5.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MRF.

MRF Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRF	67 Neutral	₹530.41B	23.43	―	0.15%	9.56%	-4.82%
APOLLOTYRE	64 Neutral	₹253.82B	16.87	―	0.98%	4.36%	-45.33%
CEATLTD	64 Neutral	₹137.31B	24.70	―	0.77%	12.61%	-12.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EXIDEIND	58 Neutral	₹247.18B	39.67	―	0.54%	2.19%	-5.70%
JKTYRE	56 Neutral	₹113.07B	17.24	―	0.59%	4.55%	-30.30%
SUPREMEIND	56 Neutral	₹470.34B	69.47	―	1.05%	1.68%	-22.27%

MRF Limited Corporate Events

MRF Seeks Shareholder Nod via Postal Ballot for Revision in Top Executives’ Pay

MRF Limited has initiated a postal ballot process to seek shareholder approval for revisions in the remuneration packages of its top leadership, including the Chairman and Managing Director, Vice Chairman and Managing Director, Managing Director, and two Whole-time Directors. The voting will be conducted exclusively through remote e-voting, with National Securities Depository Limited providing the platform and an independent scrutinizer appointed to oversee the process, underscoring a governance-focused approach to formalizing executive pay changes for the remainder of their current tenures.