Big jump! This large-cap stock adds ₹50,000 to its share price in just four months

Mint

6 days ago

MRF share price: Retail investors often shy away from large-cap stocks, especially those with high share prices, and tend to prefer small-cap stocks, likely because they appear more affordable and promise quicker gains.
However, MRF, despite being one of India's costliest stocks, has emerged as a silent outperformer, proving that in the stock market, a high price doesn't necessarily mean low returns.
The company's shares, which were trading at ₹ 102,124 apiece in early March, have jumped ₹ 50,051, or 49.3%, to the recent close of ₹ 152,175 in just over four months. The stock has ended each month in the green and is on track to close the current month in positive territory as well, having already gained 7%, provided the momentum continues.
Impressively, the stock maintained its winning run even as the Indian stock market remained in a consolidation range in recent months.
After crossing the ₹ 1 lakh mark in June 2023 to become the first company to achieve this feat, the stock has consistently traded above this level. In the previous trading session, it even touched a fresh all-time high of ₹ 153,000.
Despite being listed since 1996, the stock has never undergone a bonus issue or stock split, which partly explains its high trading price. The stock's daily average trading volume ranges between 5,000 and 10,000 shares, combining volumes from both the BSE and NSE.
Over the past 17 years, the stock has closed 14 years with positive performance, with CY14 being the standout year with a remarkable rally of 96%, followed by 48% in CY17. Throughout this period, the stock has exhibited an impressive growth of 7,497%, surging from ₹ 2,003 to its current level of ₹ 152,175 per share.
The company in the March quarter, delivered a stellar performance, with consolidated net profit rising 33 per cent year-on-year to ₹ 492 crore in Q4FY25, up from ₹ 370 crore. Its consolidated revenue from operations rose 11.4 percent to ₹ 7,074.8 crore, driven by stable raw material prices and price hikes.
Anshul Jain, Head of Research at Lakshmishree Investments, said, "MRF is on the verge of a bullish breakout from a 78-week-long rounding bottom pattern, indicating a potential long-term trend reversal. While the stock typically trades on thin volumes due to its high-ticket size, the price structure remains firmly bullish."
"A breakout from this formation could open the door for an upside move of 8–10% in the near term. Traders should focus more on price action than volume in this case, as the structure and momentum strongly favor a sustained upmove," he further added.