The most expensive stock in the Indian stock market is MRF, whose one share is worth more than Rs 1,35,000. However, now two experts have said that the shares of Madras Rubber Factory (MRF) are going to fall drastically. For this reason, MRF shares should be sold now. On Friday, MRF shares fell by 2.27% and came down to Rs 1,37,198.
MRF’s revenue in the first quarter has been much better than other companies in this sector, with revenue showing a growth of 12 percent. Due to this, the margin has also been good, but despite such strong results, profit has declined by 3 percent due to commodity inflation and higher depreciation. Due to which two brokerages are predicting a big decline in this giant stock.
Will there be a decline of 29 percent?
On Friday, MRF shares fell 3.4 percent to a low of Rs 1,35,501 on BSE during intraday trading. Later it reached the level of Rs 1,37,106.10. Experts indicate a decline of up to 29 percent in the share price of MRF from this price.
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MOFSL has said that the company has raised its FY25 EPS estimate by 4 per cent and FY26 EPS estimate by 9 per cent, keeping in view better-than-expected revenue growth and cost. MRF stock is trading at 29.5 times FY25 EPS, higher than Apollo Tyres’ 19 times and CEAT’s 17.2 times. The brokerage has recommended selling the stock with a target price of Rs 1,08,000 based on 19 times June 2026 EPS.
Will this stock fall below Rs 1,00,000?
Kotak Institutional Equities has said that MRF’s first quarter EBITDA was 7 percent higher than its estimate, due to better than expected revenue. The company expects demand to remain stable.
On the other hand, Kotak said that the current rise in RM basket will keep the margins under pressure. Due to this, there can be a big fall in the shares of MRF. This stock can fall to Rs 97,000.
(Note- Before investing in any stock, please take the help of a financial advisor.)
Source (PTI) (NDTV) (HINDUSTANTIMES)