India's MRF beats Q1 profit view on higher volumes

JK Tyre & Industries

08/08/2024 09:33

BENGALURU, Aug 8 (Reuters) - Indian tyre maker MRF  MRF.NS  reported first-quarter profit above analysts' estimates on Thursday, as stronger volume
growth outweighed a rise in rubber prices. 
    Profit fell 3.1% to 5.63 billion rupees ($67.1 million) in the April-June period, but was above analysts' expectation of 4.25 billion rupees, according
to LSEG data.
    Revenue rose about 12% to 70.78 billion rupees. 
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JU2E0
    
    KEY CONTEXT
    Prices of rubber, a key raw material for tyre makers, rose more than 10% in the April-June quarter, according to analysts.
    A healthy demand in the tyre replacement market ahead of the monsoon season was expected to soften the blow of higher rubber prices for tyremakers,
analysts said.
    Rival CEAT  CEAT.NS  also beat first-quarter profit estimates, helped by price hikes coupled with healthy demand in the replacement market. 

    
    PEER COMPARISON
    
    
                                       Valuation (next   Estimates (next 12 months)     Analysts' sentiment                                   
                                       12 months)                                                                                             
                           RIC         PE     EV/EBITDA  Revenue growth  Profit growth  Mean rating*  # of analysts  Stock to price target**  Div yield (%)
 MRF Ltd                    MRF.NS     26.70  13.50      8.19            4.37           Sell          4              1.24                     0.15
 CEAT Ltd                   CEAT.NS    15.40  7.19       9.93            4.31           Buy           14             0.89                     1.15
 Apollo Tyres Ltd           APLO.NS    15.89  7.73       7.40            12.19          Buy           23             0.96                     1.16
 JK Tyre & Industries Ltd   JKIN.NS    10.58  6.40       7.05            18.37          Buy           5              0.74                     1.12
 
    
    APRIL-JUNE STOCK PERFORMANCE
    
    
    
 
    (Figures in percentage)


($1 = 83.9270 Indian rupees)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MRF vs Peers    https://tmsnrt.rs/4fbQzIv
MRF Results    https://tmsnrt.rs/4fBWmHt
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Sethuraman NR in Bengaluru; Editing by Subhranshu Sahu and Eileen Soreng)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))