MRF Ltd. 2026 Financial Projections & Price Targets | Comprehensive Analysis
MRF Ltd. Financial Analysis & 2026 Projections
Comprehensive fundamental analysis with price targets and investment outlook
Current Price (19 Sept 2025)
2026 Price Target
Investment Recommendation
Financial Projections for 2026
| Metric | FY25 Actual | FY26 Projection | Growth/Change | Remarks |
|---|---|---|---|---|
| Revenue | ₹28,171 Cr | ₹31,250 Cr | +10.9% | Auto sector recovery & market share gains |
| Net Income | ₹1,869 Cr | ₹2,080 Cr | +11.3% | Raw material cost stabilization |
| EPS | ₹4,300 | ₹4,905 | +14.1% | Improved operational efficiency |
| P/E Ratio | 35.45 | 33.20 | -6.3% | Earnings growth outpacing price appreciation |
| Dividend Yield | 0.16% | 0.18% | +12.5% | Modest increase in dividend payout |
| ROCE | 7.51% | 8.90% | +18.5% | Better capital allocation |
| Debt to Equity | 0.12 | 0.10 | -16.7% | Strong cash flow generation |
| Operating Margin | 14.3% | 15.5% | +8.4% | Cost optimization initiatives |
| Price Target | - | ₹1,62,800 | +8.3% | MODERATE BUY Based on EPS growth & sector multiples |
Key Metrics
35.45
P/E Ratio
0.16%
Div Yield
63,760
Market Cap (Cr)
6.64%
Net Margin
Upside Potential
8.3% growth to target price
Risk Level
Moderate risk
Quarterly Targets 2026
- Q1 FY26 (Mar 2026) ₹1,58,500
- Q2 FY26 (Jun 2026) ₹1,61,200
- Q3 FY26 (Sep 2026) ₹1,59,800
- Q4 FY26 (Dec 2026) ₹1,62,800
Investment Analysis
Strengths
- Market leadership in premium tire segment
- Strong brand reputation and distribution network
- Robust cash flow generation
- Low debt levels and healthy balance sheet
Challenges
- Vulnerability to raw material price fluctuations
- Intense competition in value segment
- Dependence on automotive industry cycles
- High valuation multiples
Price Target Calculation Methodology
Our price target is based on a combination of valuation methods:
- EPS Growth Model:Expected FY26 EPS and Sector P/E
- DCF Analysis: Discounted cash flow model with 12% WACC and 4% terminal growth rate
- Relative Valuation: Comparison with industry peers like Apollo Tyres, CEAT, and Balkrishna Industries
Investment Recommendation
MRF is well-positioned to benefit from the recovery in the automotive sector and its premium product portfolio. The stock offers a moderate upside potential of 8.3% to our target price of ₹1,62,800. We recommend accumulating on dips for long-term wealth creation.
Disclaimer
This analysis represents our own projections for MRF Ltd.'s price targets based on financial data obtained from publicly available sources including Google Finance, BSE India, and NSE. These projections are for informational purposes only and should not be considered as investment advice. The actual performance may vary due to market conditions, economic factors, and company-specific developments. Investors are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
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