MRF Ltd delivered a strong set of numbers in Q4 FY24, with profitability and margins significantly improving year-on-year. The company posted a net profit of ₹498 crore, a 31.2 percent rise from ₹379.6 crore in Q4 FY23. The performance was supported by volume growth and easing raw material costs, which helped improve profitability despite a competitive pricing environment.
Revenue for the quarter came in at ₹6,944 crore, up 11.7 percent year-on-year from ₹6,215 crore. Operational performance was also robust, with EBITDA increasing 17.8 percent to ₹1,043 crore versus ₹885 crore in the same quarter last year. Margins expanded to 15 percent, outperforming Bloomberg consensus estimates of 12.5 percent and improving from 14.3 percent a year ago, reflecting better cost efficiency and pricing discipline.
Also Read: Godrej Consumer Q4 FY24 Results: Swings Back to Profit; Declares Interim Dividend
MRF’s stock is currently priced at ₹1,39,995 per share and trades at a price-to-earnings ratio of 33.9, higher than the industry average of 29.6. The price-to-book ratio stands at 3.36 with a book value of ₹41,659, indicating investor confidence in the long-term fundamentals. Return on equity stands at 12.6 percent, and return on capital employed is at 16.1 percent, supported by a solid balance sheet with a low debt-to-equity ratio of 0.18.
While the company’s free cash flow for FY24 stood at ₹1,138 crore, its three-year cumulative FCF remains negative due to capex investments. Profit growth over the last three years has been steady at a CAGR of 15 percent, while compounded sales growth for the same period is 16 percent. However, trailing twelve-month profit has declined 13 percent, pointing to base effects and margin normalization.
Shareholding data reveals stable promoter holding at 27.78 percent. FII ownership slightly declined to 17.54 percent, while DIIs increased their stake to 12.22 percent. Public shareholders continue to hold a significant 42.46 percent stake in the company.
Despite strong fundamentals, analyst sentiment remains divided. Of the 10 analysts tracking the stock, only 20 percent recommend a ‘Buy’, 20 percent suggest ‘Outperform’, while 40 percent have issued a ‘Sell’ call. This cautious stance could stem from premium valuations and limited near-term upside, though the long-term story remains intact.
With strong Q4 numbers and better-than-expected margin performance, MRF has reaffirmed its position as a resilient player in the tyre manufacturing sector. The focus now shifts to the sustainability of margins and volume momentum in the quarters ahead.
Disclaimer
This article is for educational and informational purposes only. We are not SEBI-registered investment advisors; none of this content should be considered financial advice. Please consult a certified financial planner or advisor before making any investment decisions.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
