The share market is a business full of ups and downs. It cannot be said when the investors investing in it will reach from rags to riches and when they will fall from riches to rags. For the investors, there are shares in the market ranging from 25 paise shares to shares worth thousands of rupees, on which they bet. Among these, there is also a company, whose one share is worth Rs 1.40 lakh. We are talking about the tyre manufacturing company MRF. You can buy a luxury car for the price of 10 of its shares. The story of this company is very interesting, let us know how it came into the tyre manufacturing business from making balloons and how its shares achieved the title of the country’s heaviest share.
The price of one share is Rs 1.40 lakh
On Thursday, MRF Ltd Share was trading at a level of Rs 1,40,099.90 with a slight decline in the stock market. The market capitalization of the company had reached Rs 59650 crore. MRF shares, included in the list of heavy shares present in the Indian stock market, have more than doubled the money of its investors in the last five years and during this period the price of one share has increased by Rs 86,230. In January of this year 2024, the price of this company crossed Rs 1.50 lakh for the first time.
Business started by making balloons
Before becoming the king of the tyre world, the founder of this company, KM Mammen Mappillai, used to make balloons. Yes, Mappillai entered the business world in the year 1946. He started the business of making balloons in a small shed in Tiruvottiyur, Madras. He mostly manufactured children’s toys as well as industrial gloves and things made of latex. With time, he decided to expand his business and moving forward on this, he established Madras Rubber Factory (MRF) in the year 1952. Within just 4 years of entering the business world of making tread rubber, the company grew rapidly and by the year 1956, MRF became the market leader of tread rubber in India with 50% share.
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This is how MRF missed its heights
On 5 November 1961, MRF got the status of a private limited company. Till then, the company used to manufacture tyres and tubes for automobiles, aircraft, bicycles in collaboration with Mansfield Tyre and Rubber Company. In 1965, the company started exporting tyres to the US through its first foreign venture. In the 80s, there was a big change in the Indian auto sector, affordable cars made their debut, an example of which is Maruti 800. At the same time, the two-wheeler industry also gained momentum, in 1985 the company started making tyres for two-wheelers. By 1993, MRF’s business was established and now this company had become the leader in the truck, car, bike-scooter market.
This is how the stock moved in two decades
Now let’s talk about the performance of this stock, so let us tell you that two decades ago on 6 August 2004, the price of MRF Share was Rs 1548. This stock, which was gradually rising, crossed the level of 5,000 by the year 2010. Then in 2012, its price crossed Rs 10,000 and by 7 August 2015, it had reached Rs 44,922, gaining tremendous speed. After this, this stock set new records of record growth.
This year MRF Share created history
The year 2024 proved to be excellent for the company’s shares and at the beginning of the year, on 17 January 2024 (Wednesday), this most expensive stock of the Indian stock market, MRF, created history. The company’s shares (MRF Share Price) rose 10 percent or Rs 13520.7 during intraday and crossed Rs 1.50 lakh. It is worth noting that the all-time high level of MRF shares is Rs 1,51,445. While its 52-week low level is Rs 1,01,400.
(Note- Before making any investment in the stock market, please consult your market experts.)
Source (PTI) (NDTV) (HINDUSTANTIMES)