SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : MRF Ltd

BSE: 500290 NSE: MRF ISIN: INE883A01011
  |   Sector:  Automobiles   |   Industry:  Tyres & Allied

Snapshot

Q.1 Which industry/sub-sector does MRF Ltd belong to?
MRF Ltd belongs to the Automobiles sector, operating specifically within the Tyres & Allied segment.
Q.2 Is MRF Ltd a good quality company?
MRF Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is MRF Ltd undervalued or overvalued?
MRF Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is MRF Ltd a good buy now?
MRF Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of MRF Ltd?
MRF Ltd revenue growth is 12.1% for FY-2025 , which is above its 5 year CAGR of 11.6% , indicating faster growth.
Q.2 Gross Profit margin of MRF Ltd?
MRF Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.4% for FY-2025 , which is in line with its 5 year median of 14.4% , indicating stable margins.
Q.3 Operating Profit Margin of MRF Ltd?
MRF Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.44% for FY-2025 , which is in line with its 5 year median of 14.44% indicating stable margins.
Q.4 Net Profit Margin of MRF Ltd?
MRF Ltd Net Profit Margin is 6.59% for FY-2025 , is in line with with its 5 year median of 6.59%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 14.4 14.4
Operating Profit Margin 14.44 14.44
Net Profit Margin 6.59 6.59
Q.5 Return on Asset of MRF Ltd?
MRF Ltd Return on Asset is 6.57%, which is above its 5 year historical median of 6.03%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of MRF Ltd?
MRF Ltd Return on equity is 10.53% for FY-2025 , which is above its historical median of 9.92%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of MRF Ltd?
MRF Ltd Return on capital employed is 14.36% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of MRF Ltd?
MRF Ltd Cash conversion cycle is 72 days, above its historical median of 72 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.02 0.99
ROE 10.53 9.92
ROCE 14.36 14.25
Cash Conversion Cycle 72 days 72 days
Q.9 Debt to Equity ratio of MRF Ltd?
MRF Ltd Debt-to-Equity ratio is 0.09 , which is above with the industry average of 0.05 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of MRF Ltd?
MRF Ltd Debt to cash flow from operations is 0.6 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MRF Ltd?
Promoters hold 27.77% of the MRF Ltd, with 0.09% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MRF Ltd vs industry peers?
MRF Ltd revenue CAGR is 11.59% , compared to the industry median CAGR of 5.8% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 27,665.2 4,649.4
Gross Profit 3,983.8 1,198.7
Operating Profit 3,961 988
Net Profit 1,823 624.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.02 0.39
ROE 10.53 4.96
ROCE 14.36 7.13
Cash Conversion Cycle (days) 71.95 36

Valuation & price assessment

Q.1 Stock return of MRF Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.4% 11.4% 17.8% 10.5%
Q.3 Valuation ratios of MRF Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 27.08 22.06 25.11
Price to Book 2.98 2.10 2.16
Price to Sales 1.98 1.80 1.38
EV to EBITDA 11.94 10.98 11.27

Check more companies

1. Ashok Leyland
2. Bharat Forge
3. UNO Minda
4. Schaeffler India
5. MRF
6. Tube Investments
7. Balkrishna Inds.
8. Escorts Kubota
9. Endurance Tech
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×