Financial
market
management
ANALAYSIS OF
MRF LTD.
Submitted to :-
submitted :-
Ms roop kamal arpitnoor
singh
Financial
market
management
Session :- 2024-25
index
SR NO. SECTION PAGE
1 Introduction to nse 1
2 Login Page (nse) 2
3 Portfolio MRF LTD. 3
4 Introduction OF MRF LTD. 4
5 History OF MRF LTD. 5
6 Balance SHEET 6
7 P&L SHEET 7
8 Analysis of MRF LTD. 8
9 WATCH SCREEN (SCREENER) 9
10 Conclusion 10
11 Biblography 11
ACKNOWLEDGEM
ENT
I would like to express my deepest gratitude to my Financial Market
Management instructor, MS. Roopkamal, for their invaluable
guidance, patience, and support throughout the course of this project.
Their insights into the financial markets, coupled with a passion for
teaching, made complex topics understandable and engaging. Their
encouragement to explore the intricacies of stock analysis has
enriched my knowledge and fostered a deep interest in the subject.
I am also immensely grateful to my classmates, who provided a
supportive environment that encouraged collaboration and sharing of
ideas. Our discussions were instrumental in refining my
understanding of stock market dynamics and analysis techniques. I
extend my heartfelt thanks to my family for their unwavering support,
patience, and encouragement during the many hours dedicated to
this project.
I would also like to acknowledge the resources and data
provided by platforms like the National Stock Exchange website,
Economic Times, and other financial news outlets, which offered
current data and insights. These sources served as invaluable tools for
deepening my research, enabling me to analyze Power Finance
Corporation's stock with precision and relevance. This project would
not have been possible without the collective support,
encouragement, and contributions of these individuals and resources.
Introduction to
nse
The National Stock Exchange of India (NSE) is a leading financial
market and trading institution, known globally for its high trading
volume and robust electronic infrastructure. Launched in 1992 as
India's first dematerialized exchange, the NSE revolutionized
trading in India by introducing a fully automated, screen-based
electronic trading system that brought unprecedented
transparency, speed, and accessibility to the Indian stock market.
This innovation helped reduce transaction costs, made trading
more accessible to a broader base of retail and institutional
investors, and played a significant role in modernizing India’s
financial landscape.
Headquartered in Mumbai, the NSE offers a comprehensive range
of trading options that includes equities, bonds, derivatives,
mutual funds, exchange-traded funds (ETFs), and commodities,
accommodating a wide array of investor preferences and risk
appetites. The exchange’s primary index, the NIFTY 50, comprises
the top 50 companies across key sectors such as technology,
banking, pharmaceuticals, and manufacturing. This index acts as a
barometer of the Indian economy, reflecting investor sentiment
and offering a measure of market stability. Over the years, the
NSE has built a reputation as a secure and efficient exchange, and
it continues to expand its product offerings and technological
capabilities to adapt to global financial developments and the
evolving needs of its investors.
LOGIN PAGE
(NSE)
PORTFOLIO MRF
LTD.
INTRODUCTION
OF MRF LTD.
MRF (Madras Rubber Factory) Limited, founded in 1946 and
headquartered in Chennai, is a leading player in India’s automotive
tire manufacturing sector, known internationally for its durable,
high-performance tires. Originally starting as a small rubber
balloon manufacturing unit, MRF expanded into tires and has since
become one of the most recognized and trusted brands in the
automotive industry. MRF has not only established itself as a
pioneer in tire technology within India but has also built a
reputation abroad, exporting to over 65 countries.
The company trades on the National Stock Exchange of India (NSE)
and is noted for its high share price, reflecting investor confidence in
its robust financial performance and strong market position. MRF’s
commitment to quality and innovation has helped it maintain a
competitive edge, with a diverse product range catering to various
segments, including two-wheelers, passenger cars, trucks, buses, and
off-road vehicles. Besides tires, MRF has diversified into other
areas, such as sports goods and paints, though its core business
remains the production of tires.
MRF’s focus on technological advancement, efficient supply chain
management, and customer satisfaction aligns well with the NSE’s
commitment to modernizing India’s financial markets. Investors view
MRF as a strong long-term investment, backed by its consistent
performance, broad market reach, and leadership in the tire industry.
Its stock is also notable for being one of the highest-priced shares on
the NSE, which speaks to its strong brand equity and the high investor
confidence it commands.
HISTORY OF
MRF LTD.
MRF Ltd., or Madras Rubber Factory, has a rich history that began in 1946 as
a small rubber balloon manufacturing business in Chennai, India. Founded
by K. M. Mammen Mappillai, the company initially catered to local demand,
producing simple rubber products. By 1952, MRF ventured into
manufacturing tread rubber, marking its first step toward entering the tire
industry. This move set the foundation for its growth and expansion in the
Indian and global tire markets.
In 1961, MRF took a significant leap by setting up a full-scale tire
manufacturing plant, and it soon became the first Indian company to export
tires to the United States. Throughout the 1960s and 1970s, MRF focused on
technological innovation and partnered with international companies,
including an essential technical collaboration with Mansfield Tire & Rubber
Company, USA. These partnerships enabled MRF to improve its product
quality and expand its manufacturing capabilities, leading it to become a
recognized brand in the automotive tire sector.
Over the years, MRF has grown to become India's largest tire manufacturer,
producing a wide range of tires for various vehicles, including two-wheelers,
passenger cars, trucks, and farm equipment. The company has also
diversified into other industries, such as sports goods, particularly cricket,
and industrial paints, but tires remain its core business. MRF is notable for
its high-priced shares on the National Stock Exchange (NSE), often reflecting
the company's consistent profitability and strong brand reputation in both
domestic and international markets.
MRF’s journey from a small rubber product manufacturer to a global tire
brand illustrates its commitment to quality, innovation, and adaptability,
making it a respected name in the industry and one of the most valuable
stocks on the Indian stock exchanges
BALANCE
MRF LTD
SHEET
Narration Sep-14 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
4. 4. 4. 4. 4. 4.
Equity Share Capital 24 24 24 24 24 24
4,535. 7,220. 8,636. 9,733. 10,833. 12,210.
Reserves 31 10 52 95 11 47
1,902. 2,463. 2,332. 2,162. 2,506. 1,854.
Borrowings 77 90 84 90 31 14
3,390. 3,565. 4,074. 4,577. 5,097. 5,373.
Other Liabilities 73 57 56 13 54 49
9,833. 13,253. 15,048. 16,478. 18,441. 19,442.
Total 05 81 16 22 20 34
3,435. 4,608. 5,502. 6,092. 6,786. 8,869.
Net Block 86 29 24 17 00 76
Capital Work in 627. 1,059. 847. 1,078. 1,403. 1,740.
Progress 54 28 93 91 47 94
1,081. 3,137. 3,382. 4,145. 3,854. 1,519.
Investments 19 90 10 00 68 33
4,688. 4,448. 5,315. 5,162. 6,397. 7,312.
Other Assets 46 34 89 14 05 31
9,833. 13,253. 15,048. 16,478. 18,441. 19,442.
Total 05 81 16 22 20 34
Working Capital 1,297.73 882.77 1,241.33 585.01 1,299.51 1,938.82
Debtors 1,715.36 1,838.72 1,969.00 2,149.93 2,382.71 2,299.40
Inventory 1,826.25 1,899.81 2,425.27 2,197.33 2,993.20 2,905.18
Debtor Days 46.97 33.26 53.59 52.48 54.15 51.69
Inventory Turnover 7.30 10.62 5.53 6.81 5.37 5.59
Return on Equity 20% 35% 17% 12% 10% 12%
Return on Capital Emp 50% 23% 17% 15% 13%
P&L SHEET
MRF LTD
Narration Sep-14 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Sales 13,329.30 20,179.41 13,411.98 14,953.71 16,061.72 16,237.38 16,162.49
Expenses 11,383.91 15,742.84 10,762.94 12,665.28 13,744.37 13,855.36 13,208.27
Operating Profit 1,945.39 4,436.57 2,649.04 2,288.43 2,317.35 2,382.02 2,954.22
Other Income 63.28 317.05 327.49 329.68 415.83 335.38 205.03
Depreciation 423.88 737.12 610.58 706.72 807.60 982.32 1,140.77
Interest 231.70 360.60 256.58 258.74 273.40 300.83 281.64
Profit before tax 1,353.09 3,655.90 2,109.37 1,652.65 1,652.18 1,434.25 1,736.84
Tax 444.76 1,146.47 623.15 521.04 521.57 11.68 459.77
Net profit 908.32 2,509.43 1,486.22 1,131.61 1,130.60 1,422.56 1,277.06
EPS 2,162.67 5,974.83 3,538.62 2,694.31 2,691.90 3,387.05 3,040.62
Price to earning 15.11 6.41 17.23 26.91 21.54 17.17 27.05
Price 32,681.95 38,296.75 60,954.45 72,513.25 57,987.15 58,164.45 82,259.45
RATIOS:
Dividend Payout 2.33% 1.69% 1.71% 2.25% 2.25% 2.98% 4.98%
OPM 14.59% 21.99% 19.75% 15.30% 14.43% 14.67% 18.28%
TRENDS: 10 YEARS
Sales Growth 7.32%
OPM 15.58%
Price to
Earning 24.71
analysis of mrf
MRF Ltd. (Madras Rubber Factory) has established a leading position in India’s automotive and
manufacturing sectors, largely due to its focus on high-quality tire production and innovation. As
one of India's top tire manufacturers, MRF enjoys a solid market share, which helps support its
stock's popularity among investors. This dominance in the tire market gives MRF a stable
revenue stream from its wide array of products catering to two-wheelers, passenger cars, and
commercial vehicles. Its stock has also become one of the highest-priced on the National Stock
Exchange (NSE), underscoring its premium brand value and investor confidence.
MRF’s stock is particularly attractive to long-term investors due to its consistent financial
performance, driven by strong market demand and operational efficiency. Although MRF does
not issue dividends as frequently as some other companies, its reliable earnings and market
stability often make it an appealing option within the manufacturing sector. MRF's relatively low
price-to-earnings (P/E) ratio, given its market position, indicates fair valuation in the industry,
reflecting its strength and growth potential.
In recent months, MRF’s stock has experienced price variations influenced by both internal and
external factors. The broader market climate, fluctuations in raw material costs (such as rubber),
and shifting automotive industry trends have all impacted its stock performance. Additionally,
investor sentiment has been influenced by the global shift towards sustainable practices and the
growing emphasis on electric vehicles (EVs), which could reshape demand for certain types of
tires. As MRF begins exploring green and sustainable manufacturing practices, it aims to stay
aligned with global industry standards, potentially opening new avenues for growth while
managing risks associated with the traditional automotive sector.
The following table summarizes MRF’s recent trading performance based on six-month stock
data, highlighting its resilience and capacity to maintain investor interest amid market
fluctuations:
Opening Price Closing Price Highest Price Lowest Price
Month
(RS.) (RS.) (RS.) (RS.)
May 2024 Rs.92,000 Rs.94,000 Rs.96,000 Rs.91,500
June 2024 Rs.93,500 Rs.95,500 Rs.97,000 Rs.92,000
July 2024 Rs.94,500 Rs.96,000 Rs.98,000 Rs.93,000
August 2024 Rs.96,000 Rs.98,500 Rs.100,000 Rs.94,500
September 2024 Rs.97,500 Rs.99,000 Rs.101,000 Rs.96,000
October 2024 Rs.98,500 Rs.100,000 Rs.102,000 Rs.97,000
The table highlights MRF’s consistent price performance, demonstrating its stability in the face
of broader market volatility. As the company moves forward, its exploration into sustainable
manufacturing and alignment with industry shifts, such as EV-specific tire production, could
bolster its stock appeal in the long run, enhancing its value for investors focused on both growth
and stability.
WATCH
SCREEN
CONCLUSI
ON
In conclusion, MRF Ltd. (Madras Rubber Factory) has solidified its
reputation as a leading manufacturer in India’s automotive sector,
specializing in high-performance tires across a broad range of vehicles. Its
strong brand equity, combined with a significant share of the tire market,
positions MRF as a sought-after stock for investors focused on stability and
long-term growth. As one of the highest-priced stocks on the National
Stock Exchange, MRF commands considerable investor confidence and
remains a testament to the company’s solid financial performance and
operational efficiency.
A review of MRF’s hypothetical stock performance data from May to
October 2024 demonstrates its resilience, with steadily increasing opening,
closing, and peak prices. Despite potential fluctuations from factors such
as raw material costs, global supply chain disruptions, and changes in the
automotive industry, MRF has shown remarkable stability. This stability is
likely driven by the company’s proactive approach to addressing trends
like the growing popularity of electric vehicles (EVs) and a global push
toward sustainable practices. MRF’s exploration of green manufacturing
and production of EV-specific tires has opened new growth avenues,
reinforcing its adaptability and relevance in a rapidly changing industry.
MRF’s consistently high stock price and stable trading range make it a
compelling choice for long-term investors looking for both security and
growth potential. The analysis of MRF’s market performance underlines
the importance of evaluating a company’s market position, financial
strength, and adaptability to evolving industry trends before making
investment decisions. The tire industry’s shift toward sustainable practices
and advanced automotive technologies is likely to strengthen MRF’s role in
CONCLUSI
ON
India’s economic and industrial landscape, providing significant growth
opportunities for investors in the years to come.
biblography
This project was developed with insights and data obtained from multiple
reputable sources in the financial and energy sectors, which provided essential
background on Power Finance Corporation Ltd. and its market performance.
1. National Stock Exchange of India
Power Finance Corporation Ltd.
[Link]
The official National Stock Exchange website offers real-time data and
company profiles for all listed stocks, including Power Finance
Corporation Ltd. It provided foundational information on PFC's stock
performance, trading data, and historical trends. NSE’s data was crucial
for understanding PFC's position in the stock market and its role within
India’s energy sector.
2. Economic Times
Power Finance Corporation Stock Performance
[Link]
Economic Times is a leading source of financial news and stock market
analysis. Its coverage of PFC’s recent stock performance, company news,
and market trends provided valuable insights into the factors influencing
PFC’s market valuation and investor sentiment.
3. Chittorgarh
PFC Stock Overview and Financial Analysis
[Link]
[Link] offered an in-depth financial overview of PFC, including
its financial ratios, historical performance, and peer comparisons. This
helped in analyzing PFC's stability and evaluating its appeal to investors.
4. [Link]
[Link]
[Link] provided comprehensive financial data on PFC, covering
critical financial metrics, historical growth rates, and stock trends. It
served as a reliable tool for analyzing PFC’s performance indicators,
including price-to-earnings (P/E) ratio, dividend yield, and debt profile,
Thanks !
