MRF Stock Price Surpasses Rs 1, Lakh Milestone and become lakhtakia
MRF, the renowned tire manufacturer, witnessed a significant surge in its share price, surpassing the Rs 1 lakh mark.
Initially reaching a historic high of Rs 1,00,439.95, the share price later retreated below the Rs 1 lakh level.
The driving force behind MRF’s soaring share price can be attributed to its remarkably low equity base of Rs 4.24 crore, with the promoter group holding 27.84 percent.
In the financial year 2022-23, the company paid a dividend of Rs 175 per share (1,750 percent).
Anticipation for MRF’s share price to breach the Rs 1 lakh mark was prevalent following the announcement of the company’s 2022-23 results in May.
During the fourth quarter, MRF recorded a net profit of Rs 410.66 crore, showcasing a substantial increase of 163 percent compared to the corresponding quarter of the previous year.
This fourth-quarter profit accounted for half of the company’s full-year net profit of Rs 816 crore.
That day, the MRF share price rose by 2 percent (Rs 4,908.10) to close at Rs 93,505, signalling the possibility of surpassing the Rs 1 lakh milestone.
The company attributed its impressive financial performance to the “easing of raw material prices.
” Rahul Mammen Mapillai, the Managing Director of MRF, stated in an interview that “the decline in commodity prices has resulted in lower raw material costs this quarter, thereby improving our profitability.
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