MRF shares become India's first to cross Rs 1,00,000-mark

Mumbai: Shares of tyre manufacture MRF Ltd crossed the ₹100,000/share mark on Tuesday, becoming the first Indian company with a 6-digit price. The company had tested this level in the futures segment a month ago.

After testing a lifetime high of ₹100,439.95 intraday, the shares closed nearly 1% higher at ₹99,900.00 on the NSE. The stock closed higher for the third consecutive session on Tuesday, and have clocked in gains of over 20% over a three-month period, and nearly 46% over a 52-week period.

A recent report by Goldman Sachs showed that the stock has generated a total of more than 10 times returns over a rolling 5-year period.


The recent weakness in crude oil prices has boosted sentiment for the company as tyre-makers use crude oil derivatives as raw material in the manufacturing.

Traders can take a position in the stock for a target of ₹1,10,000-₹1,15,000 over a three-five month period, with a stop loss of ₹96,900, said Rajesh Palviya, the head of technical and derivatives at Axis Securities.

The monthly trend on charts also suggests that the long-term trend for the shares is bullish, he said.

While MRF shares are currently the highest priced in India, they are not the most expensivly valued. The stock is currently trading at a price-to-earnings ratio of about 55 times, down from a peak valuation of about 70 times.

Nearly 17,000 shares of MRF exchanged hands on the NSE on Tuesday, its highest in more than a month.