Sell MRF; target of Rs 129151: Motilal Oswal

Motilal Oswal is bearish on MRF has recommended sell rating on the stock with a target price of Rs 129151 in its research report dated February 06, 2026.

Broker Research

February 11, 2026 / 22:10 IST

Sell

Motilal Oswal's research report on MRF

MRF’s 3QFY26 Adj PAT at INR7.3b was well ahead of our estimates of INR5.5b. This was largely attributed to strong operating performance, with EBITDA margins expanding 550bp YoY to 17.2% (vs. our estimate of 15.3%). We expect MRF to post a 15% earnings CAGR over FY25-28E. However, its RoCE has declined from a recent peak of 13% in FY24 to 10% in FY25 and is likely to improve to 11% by FY28E. Given its sub-par returns, valuations at 24.8x / 22.1x FY27E / FY28E appear expensive. Hence, we reiterate our Sell rating on the stock with a TP of INR129,151 (valuing it at 20x Dec’27E EPS).

Outlook

Given its sub-par returns, valuations at 24.8x / 22.1x FY27E / FY28E appear expensive. Reiterate Sell with a TP of INR 129,151, valued at 20x Dec27E EPS.

For all recommendations report, click here