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The MRF share price, of face value of Rs 10, breached the Rs 1 lakh-mark, to touch a historic Rs 1,00,439.95, before sliding to below Rs 1 lakh. At the time of writing this report, the MRF share is trading at Rs 99,969.95, up Rs 1,001.40 (1.01 per cent) from today’s opening price. The NIFTY, NSE’s index, is up 93.05 points, at 18,694.55.
MRF’s soaring share price is attributed to its extremely low equity base — Rs 4.24 crore. The promoter group holds 27.84 per cent of it. For 2022-23, the company paid Rs 175 a share (1,750 per cent) as dividend.
The tyre manufacturer’s share price crossing the Rs 1-lakh mark was expected, after it announced its 2022-23 results in May. Its fourth quarter net profit was Rs 410.66 crore, compared with Rs 156.78 crore in the corresponding quarter of the previous year – a rise of 163 per cent. The fourth quarter net accounted for half of the full-year’s net profit of Rs 816 crore. That day, the MRF share price rose 2 per cent (Rs 4,908.10) to close at Rs 93,505 — cueing a possible jump across the Rs 1-lakh high-bar.
The company had attributed the good results to “easing of raw material prices”. The company’s Managing Director, Rahul Mammen Mapillai, had told businessline that “the reduction in commodity prices has led to a decline in raw material cost for this quarter, which helped to improve our profitability.”
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