MRF Shares Hit ₹1 Lakh Mark, Becomes 1st Such Company In India
The rubber & tyre maker MRF has become the first company in India whose shares price crossed ₹1 lakh in the Stock Exchange & became India’s 1st 6-digit stock.
MRF company’s shares have grown 900% higher in the last 11 years. MRF created a historic moment on Dalal Street on Tuesday by becoming the first listed stock in India to reach the psychological six-digit mark of Rs 1,00,000 (approximately $1,214).
The stock market analysts have predicted that the average target price for the stock is Rs 82,274, indicating a potential downside of 18%.
However, the chart patterns suggest that if the stock breaches the levels of Rs 1.02 lakh, it could experience a further boost.
According to some technical analysts, the counter could reach targets as high as Rs 1.47 lakh. In recent news, the near-term targets are expected to be achievable within the range of Rs 1.10-1.15 lakh. Rs 95,000-96,000 levels are being identified as a significant support for the stock.
MRF’s share price, with a face value of Rs 10, made history by surpassing the Rs 1 lakh mark, reaching an all-time high of Rs 1,00,439.95, before eventually dropping below the six-figure mark.
In today’s trading session, MRF shares have seen a rise of 1.01%, currently trading at Rs 99,969.95 as per the latest report.
This marks an increase of Rs 1,001.40 from the opening price. In breaking news, the NSE’s index, known as the NIFTY, has surged by 93.05% and currently stands at 18,694.55.
MRF’s remarkable surge in share price is being credited to its remarkably low equity base of Rs 4.24 crore. It has been reported that the promoter group currently holds 27.84% of it.
In a recent development, the company has paid a dividend of Rs 175 per share (1,750 per cent) for the financial year 2022-23.
Tyre manufacturer’s share price crosses Rs 1-lakh mark following announcement of 2022-23 results in May. In a recent development, the net profit of the fourth quarter has surged by 163% to Rs 410.66 crore as compared to Rs 156.78 crore in the same quarter of the previous year.
Rs 408 crore of the full-year’s net profit was contributed by the fourth quarter. MRF’s share price surged by 2% on that day, closing at Rs 93,505, which could potentially lead to a breakthrough of the Rs 1-lakh high-bar.
Good results have been attributed by the company to the easing of raw material prices. In a recent statement to businessline, Rahul Mammen Mapillai, the Managing Director of the company, revealed that the decrease in commodity prices resulted in a reduction of raw material cost for the quarter, ultimately leading to an improvement in profitability.
Also read:- RBI Monetary Policy: MPC Keeps Repo Rate Unchanged At 6.5%
According to Vaibhav Kaushik, a Research Analyst at GCL Broking, the stock is backed by a robust support level around Rs 95,000. According to a market expert, if MRF continues to trade above Rs 95,000, it has the potential to reach Rs 1,25,000 before Diwali.