MRF Share Price Target After MRF Q2 Results: A Rs 1,65,238 View Implies About 32% Upside, but Profit Fell 26.6% and Raw-Material Costs Squeezed Margins

The MRF share price target of Rs 1,65,238 implies about 32% upside from Rs 1,25,105, per CLSA, after MRF Q2 results showed profit down 26.6%. Mint's headline attributes a 30% upside view to Citi, but the Rs 1,65,238 target appears in CLSA's report in the sources I found, so the attribution needs checking. This note covers the results, the margin squeeze, the broker views, the price hikes and the risks.

A target is one broker's opinion and not a forecast. Check NSE and BSE for the live quote. Tyre makers are also tracked with the wider auto sector on the Nifty Auto index, and the Nifty 50 and Sensex show overall market direction.

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MRF Share Price Target: Broker Views

Broker	View	Note
MRF share price target: CLSA	Target Rs 1,65,238; Accumulate or Outperform	About 32% above Rs 1,25,105 (my arithmetic)
MRF share price target: citi (per Mint headline)	About 30% upside	The Rs 1,65,238 target is attributed to CLSA elsewhere, so sources conflict
MRF share price target: motilal Oswal	Sell	Opposite view

Brokers disagree: one sees large upside, another recommends selling. That spread is common for a stock with a very high share price and thin supply of shares. Treat targets as a range of opinions, and check the date of each report because targets change after results.

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MRF Q2 Results: Profit Falls on Costs

Measure	Q2 FY27	Comparison
MRF share price target: net profit	Rs 386.99 crore	Down 26.6% year on year; down 21.9% from the previous quarter
MRF share price target: revenue	Rs 8,660.19 crore	Up 17.4%; other sources show Rs 8,524 crore and total income of Rs 8,791.58 crore
MRF share price target: EBITDA margin	About 11.1%	CLSA shows 10.7%, down 73 basis points quarter on quarter
MRF Q2 results: interim dividend	Rs 3 per share	Declared with results
MRF Q2 results: raw-material basket	Up 8% to 9% from the previous quarter	Cost pressure

In the MRF Q2 results, revenue grew 17.4% but profit fell because input costs rose faster than prices. A source shows profit of Rs 369 crore, which conflicts with Rs 386.99 crore, so check the filing. The gap between rising sales and falling profit is the core issue.

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Price Hikes and the Margin Outlook After MRF Q2 Results

Factor	Detail	Effect
MRF share price target: replacement tyre price hikes	About 13% to 15%	Helps margins with a lag
MRF Q2 results: OEM price hikes	Flow through with a one-quarter lag	Delayed benefit
MRF Q2 results: raw materials	Basket up 8% to 9% quarter on quarter	Pressure continues if costs rise

Price hikes should help margins in coming quarters if volumes hold. A rise of 13% to 15% in replacement tyres can reduce demand, and original equipment makers negotiate prices with a delay. The target of Rs 1,65,238 assumes margins recover, which is an assumption and not a certainty.

Checklist and Risks

Investor situation	Questions to consider
MRF Q2 results: existing holder	Do I understand that the target is one broker's view and that another says Sell?
MRF Q2 results: new investor	Have I read the Q2 filing, not just the upside headline?
Short-term trader	Can I handle swings in a very high-priced stock?
Long-term investor	Do margins and valuation fit my time horizon?

The main risks are higher raw-material costs, weak demand after price hikes, a slow pass-through to original equipment makers and wide differences in broker views. Univest does not recommend any security.

Conclusion

The MRF share price target of Rs 1,65,238 implies about 32% upside per CLSA, but MRF Q2 results show profit down 26.6% and Motilal Oswal says Sell. Sources conflict on the broker and on some figures, so read the filing and consult a SEBI-registered adviser before acting.

Frequently Asked Questions on the MRF Share Price Target

What is the MRF share price target after Q2?

Ans. CLSA's target is Rs 1,65,238, about 32% above Rs 1,25,105 by my arithmetic. Mint's headline credits Citi with about 30% upside, so the attribution conflicts.

What did MRF Q2 results show?

Ans. Net profit fell 26.6% to Rs 386.99 crore and revenue rose 17.4% to Rs 8,660.19 crore. Other sources show slightly different figures.

What is the EBITDA margin?

Ans. The margin is about 11.1%, while CLSA shows 10.7%, down 73 basis points from the previous quarter.

Did MRF declare a dividend?

Ans. Yes, an interim dividend of Rs 3 per share was declared with the results.

Why did profit fall?

Ans. The raw-material basket rose 8% to 9% from the previous quarter, which squeezed margins even as revenue grew.

Have tyre prices gone up?

Ans. Replacement tyre prices have risen about 13% to 15%, and price hikes for original equipment makers flow through with a one-quarter lag.

Which broker says Sell?

Ans. Motilal Oswal has a Sell view, which contrasts with CLSA's positive stance. Check each report's date and reasoning.

Should I buy MRF because of the target?

Ans. Univest does not recommend any security. A target is an opinion, so read the results and consult a SEBI-registered adviser before acting.