During Wednesday’s trading, MRF Ltd shares fell 4.66 percent to Rs 83628.8 per share Throughout the session, the price ranged between Rs 87240.1 and Rs 82615.4.
Today, shares of MRF fell by over 6 percent on the announcement that the tire manufacturer had reported a drop in profits of 25 percent for the quarter that ended in June 2022. MRF shares dropped by 5.81% to a price of Rs 82,615 on BSE, compared to its previous closing price of Rs 87,712.25.
The price of the shares was lower to start at Rs 86,551. At 14:09, the large-cap stock was trading at Rs 83,885, which was a decrease of 4.36 percent from its previous price. On the BSE, a total of 948 shares of the telco were traded, resulting in a transaction of around 8 crore rupees. The company’s market capitalization decreased to a total of Rs 35,582 crore.
On August 4, 2022, the price of the stock reached its 52-week high of Rs 89,333, and on February 24, 2022, it reached its 52-week low of Rs 62,944.
The value of the stock’s beta, which compares its level of volatility to that of the market as a whole, was calculated to be 0.81. The Sensex increased by 8.02 percent over the last year, whereas the scrip increased by just 4.52 percent. This indicates that the scrip has underperformed the index.
On the 10th of August, the technical charts showed that the stock’s 200-day moving average (DMA) was priced at 62944.5 rupees, while the 50-day DMA was priced at 76040.68 rupees. When a company trades much higher above both its 50-day moving average and its 200-day moving average in quick succession, this almost always indicates an upward trend in the stock’s immediate price movement. If, on the other hand, a company trades significantly below both its 50-day moving average and its 200-day moving average, this is seen as a negative trend; however, if the stock trades between these two averages, this indicates that the stock might move in either direction.
The share price has increased by 14.79 percent over the last year and has increased by 4.45 percent since the beginning of this year. The company’s consolidated profit from continuing operations for the first quarter that ended in June was recorded at Rs 123.6 crore. This figure was negatively affected by rising raw material prices. In the same time period last year, it reported a combined profit of 165.58 crore Indian rupees.
However, revenues in the first quarter increased by 36.14 percent to a total of 5,695.93 crores, as compared to the previous year’s first quarter total of 4,183.96 crores for the same period.
Operating profit excluding other income decreased by 0.43 percent during the June 2022 quarter, reaching a total of Rs 493.40 crore as opposed to Rs 495.53 crore during the June quarter of the previous fiscal year. The quarterly profit of Rs. 165.21 crores in the March quarter of the previous fiscal year dropped by 25.19 percent as compared to the previous quarter’s earnings.
Motilal Oswal said that its profits for the first quarter came in lower than expected. This was due to mark-to-market (MTM) losses as well as a cost pressure.
The stock has been given a neutral rating, and the target price has been set at 80,000 rupees, which is a nine percent decrease from where it is now trading on the market.
“Because of the increased pressure on margins, we are lowering our EPS forecast for FY23 by 5.5%. However, we are increasing our EPS forecast for FY24 by 12% because of the reduced commodity prices, which will lead to an improvement in margins. Because of the predicted MTM loss, lower other revenue led to a 30% YoY fall in PAT, which resulted in Rs 1.1 billion. Our rating remains neutral, and our price objective is set at 80,000 Indian Rupees “the company providing financial services said.
