The Hindu Business Line : MRF: Buy

LONG-term investors can contemplate exposures in the tyre major MRF at the price of Rs 2,163. Though the stock has already appreciated by 140 per cent this year, there appears to be still scope for gains.

The growth in automobile sector along with expectations of a sustained recovery in economic growth would have a positive influence on MRF's performance.

The company has a presence across almost all major segments of the industry. The small equity base, strong fundamentals and a dominant position in the industry are the positive features from an investment perspective. The company's performance in the near term may be dented on account of the firm trend in price of input costs, especially of natural rubber. The long-term growth prospect appears positive. The company is due to unveil its performance for 2002-03 (its accounting period is between October and September) in the forthcoming week (December 19). Any price dips linked to the earnings announcement, can be used to accumulate the stock.

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