MRF Reclaims Title as India’s Most Expensive Stock, Backed by Strong Fundamentals and Earnings

MRF Ltd., India's largest tyre manufacturer, has once again emerged as the country's most expensive stock in absolute terms. On June 3, MRF share price closed at Rs 1.38 lakh on the BSE, reclaiming the top spot from Elcid Investments.
This marks a strong rebound from its 52-week low of Rs 1,02,124 in March 2025. On June 4, MRF stock price ended at around Rs 1.36 lakh, comfortably ahead of Elcid Investments shares, which is priced at Rs 1.29 lakh.

MRF's Q4 FY25 Performance

MRF's impressive return to the top is underpinned by strong financial performance. For the quarter ended March FY25, the company reported a 33% year-on-year increase in consolidated net profit to Rs 492.74 crore up from Rs 370.52 crore in the same quarter a year ago. Revenue from operations rose 11.4% YoY to Rs 7,074.82 crore, compared to Rs 6,349.36 crore in the same quarter last year.

Operational metrics also showed solid growth. EBITDA rose 17.8% YoY to Rs 1,043 crore, with operating margins improving to 15% from 14.3% in the previous year. Its gross margin improved to 36.1% QoQ, despite a 290 bps YoY contraction.

MRF also declared a final dividend of Rs 229 per share for FY25, 2,290% of its Rs 10 face value, further underscoring its strong earnings momentum.

Technical and Fundamental Outlook

According to Anand Rathi, while rising input costs have affected overall profits, MRF has shown strong performance in the replacement and export segments, with exports up 23% to Rs 2,321 crore. Strategic price hikes helped mitigate raw material inflation throughout the year. The company's market cap currently stands at Rs 59,600 crore, and promoter holding is at 27.8%, with a free float of 72.2%.

Ruchit Jain, VP, Head - Equity Technical Research at Motilal Oswal suggests that MRF share price has shown relative outperformance compared to the broader market. However, some profit booking was observed over the past week. He attributes this to a recent uptick in crude oil prices, which tend to have an inverse correlation with tyre stocks like MRF.

"The overall trend in MRF shares remains bullish, but in the short term, we may see a pullback towards Rs 1,30,000 over the next 1-2 weeks." Jain said. He remains optimistic about the medium-term outlook, stating that the six-month trend continues to be positive, although short-term corrections within an uptrend are possible.

Gaurav Bissa, Senior Vice President, InCred Capital remains bullish on MRF's long-term prospects and advises current investors to hold on to MRF shares, highlighting its strong fundamentals. However, for those looking to make fresh investments, he recommends considering more affordable options in the tyre sector, like CEAT. He also points out that because MRF's stock price is so high, it may not be very liquid. Despite market ups and downs, Bissa expects MRF to do well over time.

Elcid Investments' Short-Lived Spotlight

Elcid Investments share price briefly overtook MRF in October 2024 when a BSE special auction drove its price from Rs 3.53 to Rs 2,36,250 in one day. The rally, triggered by a SEBI revaluation initiative, was short-lived. Elcid share price peaked in November 2024 and has since declined, largely due to a drop in the value of its holding in Asian Paints.

MRF Share Price Performance

Despite a recent dip of over 4% in the past week, MRF share price have rallied 32% in the past 3 months. On a year-to-date (YTD)basis, the MRF stock price is up 5.3%. Over the long term, MRF share price has delivered multibagger returns as the stock has jumped 121% in five years and 292% in ten years.

MRF remains not only India's most valuable stock but also its largest tyre manufacturer. It serves multiple segments including passenger vehicles, commercial trucks, motorcycles, and agricultural equipment. Over time, it has diversified into other sectors like conveyor belts, paints, and sports goods, cementing its status as a diversified industrial player with global reach.