MRF

Thanks to the 5% (QoQ) and over 10% (YoY) drop in cost of raw materials, a 63% (QoQ) and 137%(YoY) rise in other income and a 1% (YoY) and 5% rise in net sales at Rs.3049 crore, the company could end the quarter with a net profit of Rs.227 crore , up 58% (YoY) and up 7% (QoQ). Tax expense was risen 89% (YoY) during the quarter and its interest outgo at Rs.48 crore is also on the rise. Looking ahead, the outlook, based on the auto sector, does not look too optimistic. At least low demand is being offset by low raw material cost.

27.27% stake is held by the core promoters, the Mammen family, 15.45% is held by institutions and unlike what many assume, LIC does not own a single share in MRF. Enam holds 6.31% stake. The major lure in the stock is its tiny equity base at Rs.4.24 crore and it is sitting on a gargantuan reserves of Rs.2853 crore and hopes remain high that the company will soon declare a bonus. It is generous when it comes to dividend but has not declared a bonus yet, at least all hopes have been dashed over the past five years.