Weak operational performance

Company
06 May 2024
5 Min read 
  • MRF's 4QFY24 results update includes changes in estimates, target price, and rating.
  •  Weak operational performance due to RM pressure and EPR provisions.
  •  Lowered FY25E/FY26E EPS by 12%/10% due to commodity headwinds and EPR provisions.
  •  MRF's competitive positioning has weakened, impacting return ratios and pricing power.
  •  Stock trades at 25x FY26E EPS, above its 10-year LPA, reflecting weakening competitive position.
  •  MRF's EBITDA margin deteriorated due to high commodity inflation and EPR expenses.
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