MRF, the leading tyre maker has signed a Memorandum of Understanding with the Government of Gujarat expressing its in-principle intention to set up a new manufacturing facility in Gujarat to manufacture automotive tyres, tubes, flaps and related products.
The Company proposes to invest a sum of about Rs 4500 crore over a ten year period in a phased manner. The new plant is planned to be set up in Gujarat with the intention of broad basing the company’s manufacturing facilities across India.
The project will be funded by internal accruals or debt. In the last one year, the stock has given a return of 42.13%. Currently the stock is trading with the P/E of 14.25.
The stock has outperformed BSE midcap and auto index.
MRF Ltd ended at Rs 55340.5, up by Rs 2339.35 or 4.41% from its previous closing of Rs 53001.15 on the BSE.
The scrip opened at Rs 53850 and touched a high and low of Rs 55479.95 and Rs 53450 respectively. A total of 39556(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 22472.49 crore.
The BSE group 'A' stock of face value Rs 10 touched a 52 week high of Rs 54600.65 on 06-Oct-2016 and a 52 week low of Rs 30464.25 on 24-Jun-2016. Last one week high and low of the scrip stood at Rs 53775 and Rs 50210 respectively.
The promoters holding in the company stood at 27.49 % while Institutions and Non-Institutions held 19.84 % and 52.68 % respectively.