The Incredible Story of MRF: From ₹1200 to ₹1 Lakh in 22 Years

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MRF: From ₹1200 To ₹1 lakh in 22 years


If you had invested ₹1200 in MRF shares in 2001, you would have become a lakhpati by 2023. Sounds unbelievable, right? But that’s the power of compounding and long-term investing. MRF, the leading tyre manufacturer in India, has created history on Dalal Street by becoming the first Indian stock to touch ₹1 lakh per share mark on June 13, 2023.

MRF has been a consistent performer in the stock market, delivering a whopping 8,233% return in the last 22 years. That means your money would have multiplied by 83 times if you had held MRF shares since 2001. The stock has also outperformed the benchmark indices Nifty 50 and BSE Sensex, which have given 1,050% and 1,100% returns respectively in the same period.

MRF’s phenomenal growth story is driven by its strong brand value, diversified product portfolio, wide distribution network, robust financial performance and visionary leadership. The company has maintained its leadership position in the tyre industry with a market share of over 30%. It has also expanded its presence in international markets such as Europe, Middle East, Africa and Asia Pacific.

MRF’s financial performance has also been impressive over the years. The company has reported a compound annual growth rate (CAGR) of 15% in revenue and 19% in net profit in the last 10 years. It has also rewarded its shareholders with regular dividends and bonus issues. The company has a dividend yield of 0.15% and a price-to-earnings ratio of 54.59 as of June 13, 2023.

MRF’s share price has also witnessed several milestones in its journey to ₹1 lakh. The stock crossed ₹10,000 mark in 2014, ₹50,000 mark in 2017 and ₹90,000 mark in 2022. It touched an all-time high of ₹1,00,439.95 on June 13, 2023. The stock has gained 45% in the last one year and 81% from the March 2020 low of ₹55,000.

MRF’s future prospects look bright as well. The company is investing heavily in research and development, capacity expansion, product innovation and customer satisfaction. It is also focusing on new segments such as electric vehicles, radial tyres and specialty tyres. The company aims to achieve a turnover of ₹50,000 crore by 2026.

MRF is undoubtedly one of the best wealth creators in the Indian stock market. It is an example of how patience and discipline can pay off handsomely for long-term investors. If you are looking for a blue-chip stock that can generate consistent returns and create wealth over time, MRF is a stock worth considering.

Disclaimer: This blog post is for informational purposes only and does not constitute any investment advice or recommendation. Please do your own research and consult a financial advisor before investing in any stock.

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