MRF:NSEMRF Limited Analysis

MRF Limited is trading at INR 128,800, slightly below its DCF‑derived fair value of around INR 131,500, suggesting modest upside. The stock sits under its 20‑day and 50‑day SMAs (both above INR 131,000) and well under the 200‑day SMA (≈ INR 145,300), while the MACD histogram is negative and the RSI sits in the low‑40s, all pointing to a short‑term bearish bias. Technical momentum is weak, but the price remains above the identified support of INR 124,900 and below the resistance near INR 140,500, offering a limited downside cushion.
Fundamentally, MRF delivers solid revenue growth of roughly 13% YoY, healthy gross margins (~37%) and operating margins (~10%). Cash balances far exceed debt, yielding a low leverage profile, and the dividend payout ratio sits at just over 4%, underscoring the sustainability of the recent Rs 229 final dividend. The company’s low beta (~0.24) and strong cash flow generation support a stable, long‑term outlook despite current bearish technical signals.