Shares of MRF climbed over 2 p.c in intraday commerce on BSE on June 30, a day after the corporate posted over a two-fold surge in consolidated internet revenue to Rs 679.02 crore for the fourth quarter ended March 31.
The corporate had reported a internet revenue of Rs 293.93 crore for a similar interval of 2018-19 fiscal.
Income from operations stood at Rs 3,685.16 crore as in contrast with Rs 4,137.67 crore in the identical interval of 2018-19, MRF Ltd stated in a regulatory submitting.
For 2019-20 fiscal, the corporate posted a consolidated internet revenue of Rs 1,422.57 crore as towards Rs 1,130.61 crore in 2018-19, it added.
Income from operations for final fiscal stood at Rs 16,239.36 crore as in comparison with Rs 16,062.46 crore in 2018-19.
The corporate’s board really useful a remaining dividend of Rs 94 per share (940 p.c) for the 12 months ended March 31.
With two interim dividends of Rs Three every paid in the course of the 12 months, the mixture dividend for the final monetary 12 months is Rs 100 every per fairness share of Rs 10 every (1,000 p.c), MRF stated.
After the March quarterly numbers, brokerage Kotak Institutional Equities maintained a ‘promote’ name on the inventory with a goal value of Rs 55,000.
“We stay involved concerning the improve in aggressive depth within the two-wheeler phase. Valuations are costly and don’t consider dangers associated to a decline in profitability over the medium-term. ‘Promote’ stays with a revised honest worth of Rs 55,000 (from Rs 62,000 earlier), valuing the inventory based mostly on 18 instances June 2022E EPS estimates (from 18 instances December 2021E estimates earlier),” Kotak stated.
Kotak has minimize the FY2021-22E EPS estimates by 22-25 p.c led by a 14-17 p.c minimize in income progress assumptions and a 40-90 bps improve in EBITDA margin growth.
The brokerage expects the corporate to do nicely on account of larger dependence on the alternative phase (70 p.c of the revenues), which it believes will stay resilient in the course of the pandemic.
Nonetheless, the entry of latest gamers within the two-wheeler trade coupled with a slowdown within the automotive trade doesn’t augur nicely for the corporate’s OEM revenues, Kotak underscored.
Shares of MRF traded 1.59 p.c larger at Rs 66,230 on BSE round 12:10 hours.
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