Winning Bizness Desk

Mumbai. June 13, 2023 became the red-letter-day for the Indian stock market history as MRF share price crossed Rs 1 lakh landmark. It is the first stock to cross the one lakh mark. MRF shares rose 1.37 percent on June 13, taking its price to Rs 1 lakh 300. Shares of tire companies have rallied as the price of crude oil has steadily declined. Sensex again reached the 63 thousand mark. The stock opened at 99,500 on the BSE on June 13, 2023 and touched an all-time high of Rs 1,00,300 in the morning session. The stock has grown tremendously over the past year. The stock has gained 45 percent in the past one year, compared to a 19 percent gain in the benchmark Sensex. MRF shares touched a 52-week low of 65,900.05 on BSE on June 17, 2022.

Strong performance of the company in the March quarter

MRF Company has performed excellently in the fourth quarter. In the March quarter of FY23, MRF's standalone profit rose 162 percent to Rs 410.66 crore. The operating performance of the company has strengthened during this period. Also, standalone revenue from the company's operations grew by 10 percent to Rs 5,725.4 crore on a year-on-year basis. The company has declared a dividend of Rs 169 per share. If we look at the shares of MRF in the year 2000, the share price was one thousand rupees per share. In 2012, it reached Rs 10,000. After this in 2014, this share reached Rs 25,000. Then in 2016, it reached Rs 50,000. 75,000 in 2018 and has now crossed the Rs one lakh mark. On April 27, 1993, the price of one share of MRF was Rs.11.

Why is this share so expensive?

Why is MRF stock so expensive? Such a question must have come to your mind. The biggest and most important reason behind this is not to split the shares of the company. According to Angel One, MRF has never split its shares since 1975. Earlier, MRF had issued bonus shares in the ratio of 1:2 in 1970 and 3:10 in 1975.

Starting with making a toy balloon

The full name of MRF is Madras Rubber Factory. They started in 1946 by making toy balloons. They started making tires from 1960. Now this company is the largest tire manufacturing company in India. The tire industry market in India is around 60000 crores. JK Tyre, CEAT Tire etc. are competitors of MRF. MRF has more than 2500 distributors in India and the company exports to more than 75 countries worldwide.