MRF Share Price Falls After Q3 Profit Drops 40%
MRF share price tanked 3.9% intraday to Rs 1,10,500 apiece and was trading around that level by 12:45 p.m.
MRF Ltd.'s stock declined nearly 4% on Thursday as the company's third-quarter profit fell, along with operating income and margin.
Standalone net profit fell 40% to Rs 306 crore in the October-December quarter, versus Rs 508 crore in the year-ago period, according to an exchange filing. Analysts' consensus estimate compiled by Bloomberg had projected a bottomline of Rs 407.7 crore.
Revenue from operations rose 13.8% to Rs 6,883 crore, compare to Rs 6,047 crore last year. The forecast was for Rs 6,770 crore.
On the operating side, earnings before interest, tax, depreciation and amortisation or Ebitda was down 23% to Rs 802 crore from Rs 1,038 crore. This compared to an estimate of Rs 864 crore.
Likewise, the Ebitda margin contracted to 11.7% from 17.2% earlier and below the estimate of 14.2%.
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MRF share price tanked 3.9% intraday to Rs 1,10,500 apiece.
MRF share price tanked 3.9% intraday to Rs 1,10,500 apiece and was trading around that level by 12:45 p.m. The benchmark NSE Nifty 50 was down 0.43%.
The stock has fallen 22% in the last 12 months. The total traded volume so far in the day stood at two times its 30-day average. The relative strength index was at 56.
Three out of the 10 analysts tracking MRF have a 'buy' rating on the stock, one recommends a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target implies a potential upside of 8.5%.
