MRF

MRF is amongst the top gainers on the BSE after it declared its Q3 numbers. The stock with a face value of Rs.10/share is up after the company did very well for its first quarter ended 31st Dec 2012. Thanks to the 3% (QoQ) and over 6% (YoY) drop in cost of raw materials, and a 1% (QoQ) and 5% rise in net sales at Rs.3023 crore, the company posted a net profit at Rs.180 crore, up 9% sequentially and 59% up YoY.

Despite the company passing on benefit of cost cut by reducing prices, it was offset by higher sales offtake in aftermarket sales. And looking ahead the company plans to further strengthen this market as though much more competitive as the auto sector outlook does not seem as rosy as of now. The company, though has stated that the outlook looks bearish for the sector over the next 6 months.

27.17% held by the core promoters, the Mammen family, 29.5% is held by institutions and unlike what many assume, LIC does 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 son 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.