Last Updated: May 03, 2023, 14:50 IST
MRF share price jumped nearly 5 per cent to hit a high of Rs 92,850 apiece on the BSE.
This comes after the company announced a 1,690 per cent final dividend (Rs 169 per share of the face value of Rs 10) along with the announcement of the March quarter results. MRF on Wednesday reported 86 per cent rise in the consolidated net profit to Rs 313.53 crore in the quarter ending March 31, 2023, as compared to Rs 168.53 crore in the same quarter in 2021-22 (FY22).
Its consolidated revenue from operations rose 10 per cent to Rs 5,841.7 crore in Q4FY23 as compared to Rs 5,304.8 crore in Q4FY22.
The company had earlier announced two interim dividends of Rs 3 each. The total dividend for the financial year works out to be Rs 175 per share.
In FY23, the company’s profit rose 8.4 per cent to Rs 739.52 crore from Rs 681.67 crore in FY22.
Total expenses rose roughly 5 per cent in the quarter, slowing from a 23 per cent growth in the first nine months of the fiscal year, as rubber prices eased 3 per cent sequentially in the fourth quarter according to a preview note by Elara Capital analysts.
Analysts expect tyremakers including MRF to have booked profits amid a fall in raw material prices, with price increases they had put in place over the last year tipped to further drive bottom lines.
As per Trendlyne data, the average target price of the stock is Rs 74,468, which shows a downside of 19 per cent from the current market prices.
The consensus recommendation from nine analysts for the stock is a strong sell. Out of these analysts, eight have strong sell and sell ratings, while one has a hold rating.
Technically, MRF is trading above 8 out of 8 SMAs. The day RSI (14) is at 65.7. The RSI below 30 is considered oversold and above 70 is overbought. MFI is at 83.4, and MFI above 80 is considered strongly overbought. This implies that the stock may show a pullback.
Read all the Latest Business News, Tax News and Stock Market Updates here
