LKP Shares has initiated a buy rating on MRF with a price target of Rs 4000 in its April 22, 2009 research report.
"We believe that the raw material inventory at higher prices would get utilized this fiscal and in our view the worst may be over for MRF as evident from the Q2 results the second half should see MRF recover lost ground although the profits would de-grow 27% this fiscal to Rs 1.06 billion and we expect the company to bounce back next fiscal with net profits forecasted to grow 45% to Rs 1.54 billion. MRF trading at 6xFY'10E and 5xFY'11E earnings can be accumulated below Rs 2000 for a 30-Month price target of Rs 4000. We initiate coverage on MRF with a 'BUY'," says LKP Shares' research report.
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