MRF Stock Price Analysis and Quick Research Report. Is MRF an attractive stock to invest in?
Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse MRF.
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PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). MRF has a PE ratio of 22.7685192168418 which is high and comparatively overvalued.
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Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. MRF has ROA of 7.8003% which is a bad sign for future performance. (Higher values are always desirable.)
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Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. MRF has a Current ratio of 1.6184.
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Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. MRF has a ROE of 12.1954%. (Higher is better)
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Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. MRF has a Debt to Equity ratio of 0.0415 which means that the company has low proportion of debt in its capital.
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Sales growth: MRF has reported revenue growth of 10.7964% which is poor in relation to its growth and performance.
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Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of MRF for the current financial year is 15.5211326604916%.
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Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for MRF is Rs 235 and the yield is 0.1873%.
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Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of MRF is Rs 5530.4431. The higher the EPS, the better it is for investors.
One can find all the Financial Ratios of MRF in Ticker for free. Also, one can get the intrinsic value of MRF by using Valuation Calculators, which are available with a Finology ONE subscription.
MRF FAQs
Q1. What is MRF share price today?
Ans: The current share price of MRF is Rs 125920.
Q2. What is the market capitalisation of MRF?
Ans: MRF has a market capitalisation of Rs 53404.472656 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of MRF?
Ans: The PE ratio of MRF is 22.7685192168418 and the P/B ratio of MRF is 2.55202394651298, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of MRF share?
Ans: The 52-week high share price of MRF is Rs 159700, and the 52-week low share price of MRF is Rs 115190.
Q5. Does MRF pay dividends?
Ans: Currently, MRF pays dividends. Dividend yield of MRF is around 0.1873%.
Q6. What are the face value and book value of MRF shares?
Ans: The face value of MRF shares is Rs 10, while the book value per share of MRF is around Rs 49341.2298. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What is the debt of MRF?
Ans: MRF has a total debt of Rs 849.01 Cr., which affects investor sentiment and financial stability.
Q8. What are the ROE and ROCE of MRF?
Ans: The ROE of MRF is 12.1954% and ROCE of MRF is 16.7384%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q9. Is MRF a good buy for the long term?
Ans: The MRF long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q10. Is MRF undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the MRF appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q11. How to check MRF’s financials?
Ans: You can review MRF’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.