MRF Limited (MRF) AI Stock Analysis

• Market Cap: ₹630.23B
• Dividend Yield: 0.16%
• Average Volume (3M): 514.00
• Price to Earnings (P/E): 35.0
• Beta (1Y): 1.09
• Revenue Growth: 10.44%
• EPS Growth: -12.83%
• Country: IN
• Employees: 19,209
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1142.00
• Shares Outstanding: 4,241,143
• 10 Day Avg. Volume: 418
• 30 Day Avg. Volume: 514
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹126,450.67
• Price Target Upside: -14.90% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: ₹158,032 ▲(6.35% Upside)

MRF Limited's strong financial performance is the most significant factor, supported by consistent revenue growth and effective cash flow management. However, technical indicators suggest neutral to bearish momentum, and the valuation indicates the stock may be overvalued, with a low dividend yield offering limited income potential.

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 Limited primarily makes money through the manufacturing and sale of tyres, which is its core business. The company has a comprehensive product portfolio that caters to various segments of the automotive industry, including passenger vehicles, commercial vehicles, farm machinery, and two-wheelers. Revenue is generated from both domestic sales in India and exports to international markets. MRF also earns income from its ancillary products and services, including retreading operations and the sale of rubber products like conveyor belts and paints. The company's extensive distribution network, brand strength, and continuous investment in research and development contribute significantly to its revenue generation. Additionally, strategic partnerships with automobile manufacturers enhance its market presence and drive sales.

MRF Limited Financial Statement Overview

Summary

MRF Limited displays a strong financial profile with consistent revenue growth and effective cash flow management. The balance sheet is solid, with prudent leverage and increasing equity. However, profitability margins have shown some volatility, and recent free cash flow reductions suggest increased capital investments.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	281.53B	281.53B	251.69B	230.09B	190.27B	160.77B
Gross Profit	93.73B	102.27B	96.23B	75.69B	60.59B	64.88B
EBITDA	42.73B	44.93B	45.74B	26.45B	23.72B	31.55B
Net Income	18.69B	18.69B	20.81B	7.69B	6.69B	12.77B
Balance Sheet
Total Assets	295.67B	295.67B	268.49B	243.69B	230.60B	225.82B
Cash, Cash Equivalents and Short-Term Investments	39.83B	39.83B	27.47B	23.38B	34.05B	49.11B
Total Debt	37.71B	37.71B	28.21B	30.14B	32.29B	23.62B
Total Liabilities	110.78B	110.78B	101.46B	96.62B	90.28B	91.68B
Stockholders Equity	184.88B	184.88B	167.03B	147.08B	140.32B	134.14B
Cash Flow
Free Cash Flow	0.00	5.60B	11.38B	-5.36B	-22.85B	34.72B
Operating Cash Flow	0.00	18.68B	33.01B	27.55B	-5.78B	43.25B
Investing Cash Flow	0.00	-20.82B	-23.79B	-19.23B	1.65B	-50.86B
Financing Cash Flow	0.00	2.82B	-8.68B	-8.40B	4.24B	-2.50B

MRF Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 148598.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MRF, the sentiment is Neutral. The current price of 148598.2 is below the 20-day moving average (MA) of 149525.13, above the 50-day MA of 147332.11, and above the 200-day MA of 131068.44, indicating a neutral trend. The MACD of 1448.24 indicates Negative momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 40.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MRF.

MRF Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRF	68 Neutral	₹630.23B	35.04	―	0.16%	10.44%	-12.83%
APOLLOTYRE	66 Neutral	₹304.82B	36.63	7.59%	1.04%	3.46%	-48.85%
SUPREMEIND	66 Neutral	₹537.86B	60.45	16.98%	0.80%	0.16%	-21.08%
CEATLTD	60 Neutral	₹137.47B	31.90	―	0.88%	11.09%	-33.93%
JKTYRE	60 Neutral	₹98.20B	21.87	10.21%	0.84%	―	-50.24%
EXIDEIND	58 Neutral	₹330.52B	38.98	5.71%	0.51%	3.17%	-3.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%