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.