Swastika Investmart has recommended buy rating on MRF with a target of Rs 6900-7200, in its January 06, 2010 research report.
"MRF is the leader in the Industry and holds the No. 1 position for the last 21 years. The company is the first tyre company in India to reach a turnover of 5000 crores, which makes it the most dominant player in the Industry. MRF is the leading manufacturer of Tyres in almost all segments. It has diverse business interests which also include Pretreads, Paint and Coats and Toys."
"Company's Profits have been on the rise since last 5 years from 2004 to 2009 with a CAGR of 54.44% p.a. Company's Net Sales have been rising steadily since last 5 years with a CAGR of 17.46% p.a. Company's book value has increased with a CAGR of 13.48% p.a. during the period 2004 to 2009. The Net Worth has risen with a CAGR of 11.88% p.a. in last 5 years from the year 2004 to 2009. Company has proposed a Dividend of 250% for the year ended 2008-09, making it the highest Dividend Payment ever in the last 7 years. 'Buy' the stock below Rs 6100 for a target of Rs 6900-7200."
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