Buy MRF, target price Rs 96217: Anand Rathi

Anand Rathi has buy call on MRF with a target price of Rs 96217. The current market price of MRF Ltd. is Rs 77443.85.
Time period given by analyst is one year when MRF Ltd. price can reach defined target.
MRF Ltd., incorporated in the year 1960, is a Large Cap company (having a market cap of Rs 32911.14 Crore) operating in Tyres sector.

MRF Ltd. key Products/Revenue Segments include Automobile Tubes, Others, Scrap, Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 4996.63 Crore, up 16.84 % from last quarter Total Income of Rs 4276.58 Crore and up 16.50 % from last year same quarter Total Income of Rs 4289.08 Crore. Company reported net profit after tax of Rs 189.06 Crore in latest quarter.

Investment Rationale
The brokerage expects an 18% revenue CAGR over FY21-23, and 28% in earnings, leading to an EPS of Rs4,811. It maintains Buy rating at a TP of Rs.96,217 (20x FY23e). Risks: Higher rubber costs, low volume growth.

Promoter/FII Holdings
Promoters held 27.84 per cent stake in the company as of 30-Sep-2021, while FIIs owned 19.54 per cent, DIIs 8.19 per cent.