Tyre manufacturer MRF, long known as the priciest stock in India, has continued its upward trajectory, climbing 54% from its March lows to trade at ₹157,165. In October, the stock surpassed ₹1.6 lakh for the first time, hitting a record high of ₹1,63,600, marking another milestone in its ongoing rally.
However, analysts caution that the rally may face near-term pressure as MRF’s September quarter results failed to impress, despite margins beating estimates. Motilal Oswal noted that MRF is now trading at 32.5x FY26E and 27.6x FY27E EPS, above its 10-year average of 25x, making it expensive relative to peers. The brokerage highlighted that MRF’s competitive positioning has weakened in recent years, limiting pricing power in PCR and TBR segments. While revenue recovery is ongoing, margin growth could remain constrained, even with falling input costs. Motilal Oswal retained a ‘Sell’ rating, setting a target of ₹1,21,162, implying a 23% downside.
Kotak Securities also maintained a Sell stance, revising its target to ₹1.28 lakh. MRF reported Q2FY26 net profit of ₹525.64 crore, up 11.7% YoY. The stock has gained 21% YTD, with a long-term 16-year growth of 7,746%, crossing ₹1 lakh in June 2023.
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