Success Stories #1(MRF)

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The first Story we will talk about is from the Investment in MRF.
This takes us back to 1990 and this story is what a classic example of Investment in a long term is about. 
A man bought 10,000 shares of MRF in 1990 , held it till 2016 and now those MRF shares have risen by over 14000% becoming the most expensive stock on Indian market indexes. MRF share price has touched over Rs 74,000-mark and is expected to reach even above Rs 80,000-level.
Such performance is not the end for MRF, analysts are still optimistic on the share price considering the company's strong business portfolio. 
Vijay Sarthy TS and Shubhranshu Mishra analysts at Anand Rathi said, "Given the decline in rubber costs and its continued higher revenue growth, MRF’s margin is expected to be better in coming quarters.  For the next two years, we expect competition in two-wheeler tyres to be keener. Nevertheless, the company will be able to maintain its market share, we believe."
On the strong volume growth, the duo expects MRF's revenue over FY17-19 to clock a 14% CAGR. While  FY18 margin to be lower (at 17.9%) and FY19’s to come at 21.2%, resulting in a 19% EBITDA CAGR. 
Accordingly, Anand Rathi believe MRF's earnings to register a 21% CAGR (compounded annual growth rate) to Rs 2,140 crore, leading to an EPS of Rs 5,044.4. We recommend a Buy on the stock, at a price target of Rs 81,710 (16x FY19e EPS).'

Comments

  1. Pankaj Yadav14 January 2020 at 04:26

    Thank you for the awesome suggestion, Please find some good Penny stock which can provide similar written how MRF has provided 😊

    ReplyDelete
    Replies
    1. Dhayantra16 January 2020 at 22:35

      Thank you for the appreciation, we will definitely bring a new blog soon ,covering the Power of Penny Stocks. Thank You & Keep Earning .

      Delete

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