CLSA upgrades MRF stock target to Rs 1,68,426, 21.7% upside expected

Mumbai: Brokerage CLSA has maintained its 'outperform' standing connected tyre shaper MRF and accrued its price target to ₹1,68,426. The people implies an upside of 21.7% from Thursday's adjacent of ₹1,38,355. The banal fell 1.4% connected Thursday.

The brokerage's analysts said successful a enactment to clients that MRF's fourth-quarter profitability was higher than consensus, led by gross borderline (GM) enlargement connected the backmost of softening earthy worldly costs and the trickling effect of terms hikes taken successful the 3rd quarter.

"We expect GM to proceed to grow connected the backmost of softening earthy materials costs, particularly crude-based derivative materials, to beryllium reflected much from the September quarter," said the note. "Domestic earthy rubber prices are yet to correct, we believe, and should adhd to borderline enlargement scope successful the coming months."

Shares of MRF moved up 23% successful the past month, against the benchmark Nifty Midcap 50's gains of 7.4% successful this period.