On May 7, 2025, shares of MRF Ltd, India’s leading tyre manufacturer, surged by 3.77%, reaching a record price of ₹1,40,075 on the National Stock Exchange (NSE). This increase, amounting to ₹5,085 from the previous close of ₹1,34,990, reflects a strong investor interest spurred by the company’s impressive quarterly results and favorable market conditions.
The stock opened at ₹1,31,500 and peaked at ₹1,41,500 during the trading session, showcasing robust demand for MRF’s shares. As of 1:52 PM, the stock’s performance positioned the company with a market capitalization of ₹59.38 crore and a price-to-earnings (P/E) ratio of 33.88, alongside a modest dividend yield of 0.14%.
Several factors contributed to MRF’s strong stock performance. The company recently announced its Q4 FY25 results, revealing significant revenue and profit growth. Specifically, MRF reported a 32.99% year-on-year increase in its consolidated net profit for the January-March 2025 quarter, amounting to ₹492.74 crore compared to ₹370.52 crore in the same period last year. Additionally, revenue from operations climbed 11.43% to ₹7,074.82 crore from ₹6,349.36 crore a year prior.
Moreover, MRF’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached ₹1,043 crore, with an EBITDA margin that expanded by 70 basis points to 15% from 14.3% in the previous year. This robust financial performance was further complemented by a favorable outlook in the automotive sector, particularly in the replacement tyre segment, which has been a consistent driver of MRF’s growth.
In addition to the impressive financial results, MRF’s board announced a final dividend of ₹229 per share for the financial year 2025, bringing the total dividend for the fiscal year to ₹235 per share. This total includes two interim dividends of ₹3 per share that had already been declared and paid earlier in the year. The dividend announcement marks a significant increase from the previous year, where the final dividend stood at ₹194 per share.
Market analysts attribute MRF’s success to its premium product range and strong market presence across various segments, including passenger, commercial, and two-wheeler tyres. The company has also diversified into several verticals, including conveyor belts, paints, and sports goods, enhancing its overall market position.
As MRF continues to solidify its standing as a market leader, it is essential for investors to monitor key factors that could influence future performance. These include raw material costs, particularly rubber prices, and developments within the automotive sector, both domestically and internationally. Investors are encouraged to consult with financial advisors to navigate market conditions effectively.
Over the past year, MRF shares have exhibited remarkable volatility, with a 52-week high of ₹1,43,849.90 and a low of ₹1,02,124.05. Despite the fluctuations, the company’s stock has gained nearly 30% from recent lows of ₹1,08,001 per share hit in early April 2025. This uptrend has been particularly notable as the stock has risen 7.5% this year, contrasting with a 3.5% decline in the benchmark Nifty 50 index.
In summary, MRF Ltd’s latest quarterly results and strategic dividend announcements have significantly bolstered investor confidence, leading to a notable surge in its share price. With strong fundamentals and a positive market outlook, MRF is poised for continued growth as it navigates the evolving landscape of the tyre industry.
