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In the world of expensive Indian stocks, the crown has returned to a familiar head. On June 3, 2025, tyre maker MRF zoomed past Elcid Investments to once again become the costliest stock on Dalal Street. But unlike its rival's brief moment in the spotlight—fueled by a special session—MRF’s rally is built on solid treads: robust profits, market leadership, and long-term investor trust.
What’s happening?
As of June 3, 2025, MRF shares closed at Rs 1,37,834 apiece, reclaiming their title as the highest-priced stock in India. This move came after overtaking Elcid Investments, whose price had briefly shot up to Rs 1.29 lakh due to a price discovery session with limited liquidity.
Why is the stock buzzing?
- Strong Q4 numbers: MRF reported a 31 per cent year-on-year (YoY) jump in net profit for Q4 FY25, at Rs 498 crore. Margins also improved, driven by softer raw material costs and better product mix.
- Rally from recent lows: The stock bounced back nearly 35 per cent from its 52-week low of Rs 1,02,124 in March 2025, showcasing strong buying interest and recovery momentum.
- Fundamentals over flair: Unlike Elcid, which lacks active operations or revenue, MRF’s price surge is rooted in business strength and earnings growth. That matters in the long run.
About the company
Madras Rubber Factory, or MRF, is India’s largest tyre manufacturer and a household name in the automotive sector. It produces a wide range of tyres for vehicles across categories, from two-wheelers to aircraft. The company also has a presence in paints, sports goods and motorsports.
Below is a table summarising the company’s fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 58,458 crore |
| ROE | 13.3 per cent |
| ROCE | 17.5 per cent |
| P/E ratio | 31.3 |
| P/B ratio | 3.2 |
| Dividend yield | 0.2 per cent |
| Book value | Rs 43,593 |
| EPS | Rs 4,407.5 |
Value Research Online Ratings
| Parameter | Rating |
|---|---|
| Overall | 4/5 |
| Quality | 6/10 |
| Growth | 7/10 |
| Valuation | 4/10 |
| Momentum | 9/10 |
MRF scores high on quality and growth, though valuation is on the expensive side, which is not surprising given its lofty price.
What it means for investors
MRF may not be everyone’s cup of tea at this price point, especially retail investors who find such high unit prices psychologically daunting. But the stock continues to hold institutional charm, given its consistency, market dominance, and low free float.
For those already invested, the fundamentals remain reassuring. However, new investors should evaluate if current valuations justify further upside, or whether the rally has already priced in the near-term positives.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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