India’s exceptional 21st century chronicle

Who hasn’t heard of MRF?  While we know it for having the best quality tyres in India, the stock market veterans know it for a whole different reason!

Madras Rubber Factory Limited, commonly known by the abbreviation MRF, is an Indian multinational and the largest manufacturer of tyres in India. It is headquartered in Chennai, India.  The company manufactures rubber products including tyres, treads, tubes and conveyor belts, paints and toys.

Year Close Price
2000 551.65
2001 710.35
2002 900
2003 2301.15
2004 2420.15
2005 2750.95
2006 4303.5
2007 7220.65
2008 2002.45
2009 6034
2010 7207.6
2011 6991.35
2012 12806.85
2013 19372.15
2014 37882.9
2015 39497.7
2016 48781.15
2017 70927.65


Let us take a simple example of an investor who bought 100 shares of MRF in 2000, and being a long term value investor trusted the company and its credibility and held on to it for 17 years.

Value of investment in 2001: Rs. 55,100

Value of investment in 2017: Rs. 70,92,700

Profit on investment: Rs. 70,37,600

Gains: 12772%

Dividends paid: Rs. 45400

This is another story of the beauty of compounding, and the power of patience with ability to identify a good company and sticking with it through recessions, depressions, losses and market changes.



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