MRF (MRF)

FairStock Score: 54/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at MRF as a large tyre maker—a business that may have staying power, but the figures don’t scream wide moat. At ₹133,490, market cap ₹56,615 Cr, P/E 23.42, P/B 2.70, book value ₹49,454.97, I must ask what I’m getting. Graham Number is ₹72,166.02, so the margin of safety is -95.36%. That is not a value investor’s entry price. In Graham’s terms, I’m paying roughly ₹1.85 for each ₹1 of Graham value. Financial health is the strong part: debt/equity 0.15, Altman Z 3.37, Piotroski F-Score 8/9. Returns are decent, not extraordinary: ROE 12.06%, ROCE 13.62%. Sales growth 10.37% and 5-year revenue CAGR 11.64% show the top line moves, and the latest quarter had sales ₹8,050 Cr with net profit ₹692 Cr. But profit growth is -2.04% and free cash flow is -214 Cr, so the business is not converting growth into cash currently. PEG 3.18 and EV/EBITDA 62.19 are expensive for a tyre company; dividend yield 0.35% adds little. Promoter holding 27.73% is moderate. The 52-week range ₹121,500–₹163,600 and FairStock 54/100 mixed score reinforce caution. For an Indian retail investor, MRF might be a stalwart, but the price already assumes a lot. I would wait for a wider margin of safety or evidence that profit growth and free cash flow turn positive. Watch sales growth, profit growth, free cash flow, and the valuation gap to Graham Number. At this price, I’m not a buyer—I’m a patient observer.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer