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MRF Ltd

NSE: MRF BSE: 500290

146455

(8.51)%

Sun, 08 Feb 2026, 09:54 pm

Analysis

dividend

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Pros

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    Cons

    • MRF is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
    • No need to calculate the sustainability of MRF's dividends as it is not paying a notable one for India.
    • No need to calculate the sustainability of MRF's dividends in 3 years as they are not expected to pay a notable one for India.
    • MRF is not paying a notable dividend for India, therefore no need to check if the payments are stable.
    • MRF's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
    • MRF's dividend is below the markets top 25% of dividend payers in India (3.08%).

    future

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    Pros

    • Cash flow for MRF is expected to increase by more than 50% in 2 years time.
    • MRF's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • MRF's earnings are expected to exceed the low risk growth rate next year.
    • Performance (ROE) is expected to be above the current IN Auto Components industry average.
    • An improvement in MRF's performance (ROE) is expected over the next 3 years.
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    Cons

    • MRF's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).
    • MRF's earnings growth is positive but not above the India market average.
    • MRF's net income is expected to increase but not above the 50% threshold in 2 years time.
    • MRF is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • MRF's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • MRF's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
    • MRF's revenue growth is positive but not above the India market average.

    health

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    Pros

    • MRF is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • MRF is profitable, therefore cash runway is not a concern.
    • MRF is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (66%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 3.7x debt.
    • MRF's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (40% vs 19.4% today).
    • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
    • MRF's level of debt (19.4%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The average tenure for the MRF board of directors is over 10 years, this suggests they are a seasoned and experienced board.
    • K. M.'s compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the MRF management team is about average.
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    Cons

    • K. M.'s remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

      • MRF is covered by less than 3 analysts.

      past

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      Pros

      • MRF used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.
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      Cons

      • MRF's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • MRF's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • MRF's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • MRF has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • MRF's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

      value

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      Pros

      • MRF outperformed the Auto Components industry which returned -22.4% over the past year.
      • MRF outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:MRF is up 7.8% along with the India market (8%) over the past month.
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      Cons

      • MRF's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • MRF's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • MRF is overvalued based on assets compared to the IN Auto Components industry average.
      • MRF is poor value based on expected growth next year.
      • MRF is overvalued based on earnings compared to the IN Auto Components industry average.
      • MRF is overvalued based on earnings compared to the India market.
      • NSEI:MRF is up 7.8% underperforming the Auto Components industry which returned 13.2% over the past month.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800