Rs 194/Sh Dividend, Highest Payout By Most Expensive Stock; Tyre Share Fell Rs 5,431 In 1-Day, Buy Or Sell

The 78-year-old largest tyre company in India, MRF Ltd is the most expensive stock in terms of per share on stock exchanges. This most expensive stock has just announced 2024's biggest dividend payout to the tune of Rs 194 per share. In total, for FY24, MRF is paying dividends up to Rs 200 per share.

In the quarter, MRF posted a consolidated net profit of Rs 370.52 crore, which was up from Rs 370.52 crore in Q4FY23, but lower from Rs 509.71 crore in the preceding quarter. Total revenue from operations rose to Rs 6,349.36 crore in Q4FY24, higher from Rs 5,841.72 crore in Q4FY23 and Rs 6,162.46 crore in Q3FY24.

MRF Dividend:

In its regulatory filing on May 3rd, MRF declared a final dividend of Rs 194 per share or 1,940% for FY24 having a face value of Rs 10 each.

Notably, the Company has already declared and paid two interim dividends of Rs3 (30%) each per share for the financial year ending 31st March 2024. The total dividend for FY24 will work out to be Rs 200 per share or 2,000%

MRF Share Price:

Before Q4 results and dividend recommendation, MRF share price ended at Rs 1,28,495 apiece on BSE with a market cap of Rs 54,496.57 crore on May 3rd. On Friday alone, MRF shares have nosedived by Rs 5,431.25 or 4.06%.

With that MRF shares have erased over Rs 1,30,000 mark. Due to its high valuation per share, MRF is the most expensive stock on the BSE and NSE.

The stock's 52-week high and low are at Rs 151,283.40 and Rs 93,060.30 apiece respectively. YTD, MRF shares are marginally down, but in a year, the stock has zoomed by over 35%. In 5 years, the stock becomes a multi-bagger with gains of nearly 139%. While MRF's all-time gain is around 4,979.04%. MRF shares merely at Rs 2,530 apiece on March 22, 1996. This makes MRF a crorepati making auto stock.

So let's suppose if an investor bought MRF shares for Rs 2 lakh at Rs 2,530 price level in March 1996. Their corpus has now surged to a whopping Rs 1.02 crore, with returns up to Rs 99.58 lakh on investment.

MRF FY24:

MRF's consolidated total income is Rs 25,486 Crores for the year ended 31st March 2024, as compared to Rs. 23,261 Crores in the previous year. The consolidated Profit before tax stood at Rs 2,787 Crores for the year ended 31st March 2024, as against Rs. 1,070 Crores for the previous financial year.

The Company's consolidated exports for the year ended 31st March, 2024, was Rs 1887 crore as against Rs 1877 Crores for the previous year ended 31st March 2023.

Compared to the previous years, during the current year, there have been hardly any price increases. In fact, there was a price decrease in one of our top-billing Radial Truck tyres. Therefore the growth achieved by the company is entirely on its own strength of brand and products, MRF said.

It added, One of the notable features of this year. was the entry of the company into the High-End Bike Steel Radial tyres. Though this is not a huge market, this was the preserve of the imported brands for a long time. MRF has been able to fill this gap as can be seen from the general acceptance of the product from the customers of this high-end bikes.

Why MRF Shares Are Expensive?

Have you ever wondered why MRF shares are so expensive? According to Angel One's website, the reason behind its expensive share price is primarily due to the limited number of shares available in the market. Additionally, MRF has never undergone a share split to decrease the share price. The equity capital of the company is Rs 4.24 Crore and it is still the same. MRF shares hold the distinction of having the highest denomination among all the companies listed in India.

Should You Buy MRF Shares?

As of the latest, the consensus recommendation from 9 analysts for MRF Ltd. is STRONG SELL, as per Trendlyne data. The analysts' 1-year average target price is of Rs 113,147, hinting a further downside of 12% in its shares.

MRF Tyres is an Indian multinational and India's largest tyre maker, headquartered in Chennai, India. The company was founded in 1949 by K M Mammen Mappillai. The company's product ranges from rubber products including tyres, treads, tubes and conveyor belts, paints and toys.