MRF Shares Break Rs 1.5 Lakh Barrier, Hit New 52-Week High After 4% Jump
MRF shares just crossed ₹1.5 lakh for the first time. That’s a big milestone, and it came with a sharp 4% rise in a single day. It also marks a fresh 52-week high for India’s most expensive stock.
We’ve seen MRF climb steadily over the years. While other stocks split or offer bonuses, MRF stays whole and keeps rising. This makes it a rare stock in the Indian market.
But what’s behind this latest surge? We’ll look at the reasons for the jump, the company’s past performance, and how MRF compares with other tyre makers. Whether you’re a new investor or tracking blue-chip stocks, this is a name worth knowing.
Key Drivers Behind the Surge
Strong Q4 Earnings
MRF’s Q4 FY25 net profit surged 33% YoY to ₹492.7 cr. Revenue also rose sharply, up 11.4% to ₹7,074.8 cr. EBITDA margins improved to ~15%.
Raw Material Tailwinds
Softening crude prices are easing costs for rubber and derivatives. CLSA expects this trend to boost margins further.
Brokerage Upgrade
CLSA reaffirmed an “Outperform” rating and lifted its price target to ₹1,68,426, a potential 21-22% upside.
Buying Momentum
The 4% intraday jump on July 9 came with sharp volume increases, signaling fresh institutional interest.
Historical Price Trajectory
- ₹1 Lakh Milestone: MRF first hit ₹1 lakh in mid-2023, becoming the first Indian stock to do so.
- Steady Climb: Over the past two years, MRF climbed 50%, driven by a longer-term uptrend of ~33% over three months.
- Recent Swing: After touching a low of ₹1,02,124 in March 2025, it rebounded to ₹1.38 lakh in June, before hitting ₹1.50 lakh recently.
Financial Performance Snapshot
- Q4 Profit & Sales: ₹492.7 cr in net profit, ₹7,074.8 cr in revenue; margin at ~15% .
- Valuation & Balance Sheet: P/E ratio at ~32x, P/B ~3.3, Debt/Equity ~0.20. The company holds more cash than debt, reflecting solid financial health.
Peer Comparison
- Valuation Premium: With a P/E of ~32x versus industry average (~28–30x), MRF commands a premium due to strong margins and brand value.
- Return Advantage: It has outperformed peers, gaining ~50% over two years; others have lagged.
Technical Analysis Overview
- Breakout Level: The ₹1.5 lakh level, once resistance, may now serve as support.
- Momentum Indicators: Bullish signals from RSI and moving averages, backed by high volume.
Risks to Monitor
- Commodity Price Shock: Any sudden increase in crude or rubber costs could pressure margins.
- High Valuation: With a P/E over 30, any market dip could impact the stock more than peers.
- Liquidity Issue: High ticket size limits retail participation, making stock moves more volatile.
Forward‑Looking Perspective
- Broker Forecasts: CLSA expects further margin gains and earnings growth through FY27, projecting free cash flow of ₹2,700 cr by then.
- Price Target: With ₹1,68,426 in sight, investors could see ~11% upside from current levels.
- Future Catalysts: Continued gains in raw material cost efficiency, rising tyre demand, and new export strategies may drive growth.
Conclusion
MRF’s rise above ₹1.5 lakh again is driven by strong earnings, easing raw-material costs, and a positive broker outlook. Its long-term gains and powerful brand make it stand out.
Yet, the high valuation and steep share price mean it demands careful thought before investing. If crude prices stay low and tyre demand holds, MRF could well reach CLSA’s target—and deliver more upside.
FAQS:
MRF shares are high because the company is strong, makes steady profits, and has never split its stock. This keeps the price growing over time without breaking it into smaller parts.
The highest price ever for MRF shares was around ₹1,50,981 on July 9, 2025. It hit this after a 4% jump in a single day of trading.
After MRF, the second most expensive share in India is Page Industries. Its stock usually trades between ₹36,000 and ₹42,000, depending on market changes.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.