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MRF Q3 Results Review: Motilal Oswal Reiterates 'Sell' On The Stock — Here's Why

Motilal Oswal expects MRF’s return ratios to dilute over the next two years as its return on equity is expected to reach 10.5% by FY27E (versus ~13.5% in FY24).

<div class="paragraphs"><p>MRF’s Q3 FY25 result was weak as the margin contracted 280bp QoQ to 11.6%. </p><p>(Source: Company website)</p></div>
MRF’s Q3 FY25 result was weak as the margin contracted 280bp QoQ to 11.6%.

(Source: Company website)

MRF appears to be focusing on recovering its share, which is hurting margins, in the interim. This is also evident in the fact that while its revenue traction is better than peers, its margin impact is higher on a sequential basis.
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