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Business News/ Markets / Stock Markets/  MRF becomes the first Indian stock to touch 1 lakh per share mark
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MRF becomes the first Indian stock to touch ₹1 lakh per share mark

MRF has become the first Indian stock to touch the rupees one lakh per share mark. MRF shares hit their 52-week lows of ₹65,900.05 on BSE on June 17, 2022. As of the closing of the previous session, the stock is up 50 per cent from that level.

MRF became the first Indian stock to touch the ₹1 lakh mark. (Agencies)Premium
MRF became the first Indian stock to touch the 1 lakh mark. (Agencies)

MRF became the first Indian stock to touch the rupee one lakh per share mark on Tuesday (June 13). The stock opened at 99,500 on BSE against the previous close of 98,939.70 and touched an all-time high of 1,00,300 in morning trade.

The stock has witnessed strong gains in the last one year. It is up 45 per cent in the last one year against a 19 per cent gain in the benchmark Sensex. MRF shares hit their 52-week low of 65,900.05 on BSE on June 17, 2022. As of the closing of the previous session, the stock is up 50 per cent from that level.

The recent boost in the stock price could be attributed to the company's strong March quarter numbers and improved prospects of profitability due to the fall in raw material prices.

The company's consolidated profit after tax (PAT) for the fourth quarter ended March 2023 was 313.53 crore, which is a rise of 86 per cent year-on-year (YoY) from the net profit of 168.53 crore achieved in the same quarter of FY22. Its consolidated revenue from operations in the fourth quarter of FY23 was 5,841.7 crore, which is a rise of 10.12 per cent YoY from 5,304.8 crore in the fourth quarter of FY22.

Its net expenses stood at 5,410.26 crore during Q4FY23 as against 5,142.79 crore during Q4FY22. The EPS of MRF reached 803.26 during the quarter under review as compared to 389.55 recorded during the year-ago quarter.

Read more: MRF records 86% YoY Q4 PAT growth, 1690% dividend declared

The fundamentals of MRF look attractive and analysts recommend one can buy this stock for the long term only if he/she can afford it. The stock's valuation is rich and after the sharp gains, some profit booking cannot be ruled out.

Analysts pointed out that MRF’s balance sheet is strong and its revenue stream is diversified across the segments, making it less vulnerable to a slowdown in a particular segment. So, one with deep pockets can consider buying the stock for the long term. At present, the stock seems to have some steam left for the short term too. 

"MRF, one of the leading stocks in the Indian stock market, has made history by becoming the first six-digit stock after surpassing the impressive milestone of rupees one lakh. The technical chart analysis indicates that there is further potential for growth, as we can observe a breakout pattern known as a classical flag formation. This pattern suggests that the stock's upward momentum is likely to continue, with a potential target of around 1,10,000," said Santosh Meena, Head of Research at Swastika Investmart.

"It's important to note that even if there are temporary pullbacks, the previous breakout level of 95,000 is expected to provide strong support and act as a solid foundation for the stock," Meena added.

Read all market-related news here

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 13 Jun 2023, 09:31 AM IST
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