MRF Limited
MRF Limited Fundamental Analysis
MRF Limited (MRF.BO) shows moderate financial fundamentals with a PE ratio of 23.77, profit margin of 7.38%, and ROE of 12.04%. The company generates $302.0B in annual revenue with strong year-over-year growth of 11.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MRF.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakMRF.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRF.BO trades at attractive valuation levels.
Growth Score
ModerateMRF.BO shows steady but slowing expansion.
Financial Health Score
ExcellentMRF.BO maintains a strong and stable balance sheet.
Profitability Score
WeakMRF.BO struggles to sustain strong margins.
Key Financial Metrics
Is MRF.BO Expensive or Cheap?
P/E Ratio
MRF.BO trades at 23.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MRF.BO's PEG of 1.17 indicates fair valuation.
Price to Book
The market values MRF Limited at 2.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.95 times EBITDA. This is generally considered low.
How Well Does MRF.BO Make Money?
Net Profit Margin
For every $100 in sales, MRF Limited keeps $7.38 as profit after all expenses.
Operating Margin
Core operations generate 12.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.04 in profit for every $100 of shareholder equity.
ROA
MRF Limited generates $7.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MRF Limited generates limited operating cash flow of $18.70B, signaling weaker underlying cash strength.
Free Cash Flow
MRF Limited produces free cash flow of $12.52B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2951.26 in free cash annually.
FCF Yield
MRF.BO converts 2.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How MRF.BO Stacks Against Its Sector Peers
| Metric | MRF.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.77 | 24.07 | Neutral |
| ROE | 12.04% | 1155.00% | Weak |
| Net Margin | 7.38% | 647.00% | Weak |
| Debt/Equity | 0.19 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 2.53 | Neutral |
| ROA | 7.36% | -8577.00% (disorted) | Weak |
MRF.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MRF Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.00%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
31.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-17.81%
Industry Style: Cyclical, Growth, Discretionary
Declining