Why is the MRF Share Price Falling?

Posted by : Kashish Aggarwal | Thu Feb 26 2026

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The recent MRF share price is ₹1,44,600, which represents a 2.69% decline over the past day, and the points have also fallen to approximately 3,965. The BSE Sensex has fallen by 0.027%, and the Nifty50 has also declined by 0.067%. The MRF share price has also declined by 0.31% over the past 5 days and by approximately 535.00; meanwhile, it has risen by 6.18% over the past month. The downward trend has persisted for the past few consecutive days, which resulting in a total loss of over 5% in that timeframe.

Technical indicators also point to weakness, with MRF trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning often signals a lack of short-term momentum and can spoil momentum-driven investors from entering or holding positions.

Table of Contents

Key Reasons Behind the MRF Share Price Fall

There are several reasons behind the MRF share price fall, such as valuation concerns & decline in profits, Low investor participation, industry competitive pressure, weak financial performance, broad market weakness, and sell ratings.

Below are the key reasons behind the MRF share price fall

Valuation concerns & Decline in Profits: Analysts have noted that the stock is overvalued on fundamentals, making it prone to profit-taking and selling off when results or market sentiment turn negative. Certain data indicated a decline in profitability or a deceleration in profit growth in some periods, despite revenue growth, which may alarm investors about the company’s future profitability.
Low Investor Participation: MRF is trading at very high absolute stock prices per share, which may discourage individual investors (since it is difficult for them to buy at such high prices). Low investor participation may lead to higher price volatility and steeper falls in a weak market environment.
Industry Competitive Pressures: Competitive pressures in tyre segments, particularly PCR (Passenger Car Radial) and TBR (Truck/Bus Radial), have reduced MRF’s erstwhile superiority in some segments, which may affect market sentiment.
Weak Financial Performance: The company has reported a decline in its financial results, highlighting a significant drop in net profit and EBITDA, resulting in a 12.8% decline in profit over the past year.
Broad Market Weakness: The stock’s underperformance relative to the sector and broader market, combined with technical weakness and increased selling volume, suggests that investors may be reacting to near-term concerns or profit-taking after a strong run-up in recent years.
Sell Ratings: Intraday trading saw the stock hit a low of ₹1,44,600, indicating selling pressure near the lower end of the day’s range. Furthermore, the weighted-average price suggests that a larger volume of shares was traded at a lower price.

MRF: Share Price Target

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The MRF share price target is ₹1,51,749.78 with a maximum estimate of ₹1,81,000.00, and a minimum estimate of ₹118,582. According to the opinions of 9 analysts who rated MRF stock in the past 3 months, most have recommended a strong sell. After accounting for other opinions, the overall rating was calculated as neutral. According to the trendlyne, the MRF has an average share price target of ₹1,49,575.50. The consensus estimate represents an upside of 3.86% from the last price of 1,44,020. View 2 reports from 2 analysts offering long-term price targets for MRF Ltd. The MRF estimates are sourced from a pool of sell-side and buy-side analysts that can be accessed.

MRF: Analyst’s Rating

The average 12-month price target is ₹1,50,120.30, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
The analyst’s target range is between ₹1,39,700 and ₹1,46,631.
According to some analysts, concerns remain about a ‘Reduce’ call at ₹1,21,590.
The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).

MRF Recent Share Movements

The recent MRF share price movements reflect a history of underperformance relative to both its sector and the broader market. Over the past week, the stock has declined by 3%, which is significantly underperforming the Sensex, which remained almost flat during the same period. The company has a low Debt-to-Equity Ratio of 0.02 times. The stock’s underperformance relative to the sector and broader market, combined with technical weakness and increased selling volume. The MRF share price has also declined by 0.31% over the past 5 days and by approximately 535.00; meanwhile, it has risen by 6.18% over the past month.

MRF Shares Future Outlook

Investors in MRF Limited (NSE: MRF) had a good week, as its shares rose 8.6% to close at ₹1,44,623 following the release of its third-quarter results. Results overall were respectable, with statutory earnings of ₹4,408 per share, roughly in line with analysts’ long-term predictions. Earnings are important to investors because they can track the company’s performance. Many analysts are predicting both positive and negative outlooks for the next year. In the lead-up to this report, the analysts had been modelling revenues of ₹328.2b and earnings per share (EPS) of ₹6,516 in 2027.

Also Read: IEX Share Price Falls 25.96% YoY

What are the Future Predictions by Analysts on MRF Shares?

After the latest results were announced, the seven analysts covering MRF are predicting revenues of ₹329.0b in 2027. If met, this would reflect a notable 9.0% increase in revenue over the last 12 months. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates. There are varying perceptions of MRF, with the most bullish analyst valuing it at ₹180,564 and the most bearish at ₹113,350 per share.

What is the Right Time to Buy MRF Shares?

According to analysts, MRF’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in MRF India. There are several factors to consider before investing in MRF India Company shares.

Strong Fundamentals: Investors should review MRF India Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
Financing Partnerships: Financing partnerships bridge the gap between customers and power institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
Growth in the automotive tyre Sector: The company is well-positioned in the export and development sectors to deliver benefits to MRF India. This dominant sector increases demand and prices for MRF India.
Highly Volatile: Prices are highly volatile, leading to significant price changes that substantially affect MRF India Company’s stock price. Investors must review the market structure before investing in MRF India shares.

Also Read: Why is the Mega Corporation Share Price Falling?

Conclusion

MRF has demonstrated healthy long-term growth, with net sales expanding at an annual rate exceeding 15%. The stock is still trading at a premium compared to its peers’ average historical valuations. The recent decline in MRF’s share price has been attributed to short-term market dynamics rather than any decline in the company’s underlying business. While the stock is currently trading below key moving averages, its fundamentals may support a recovery once short-term pressures ease. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.

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FAQs

1. What are the key reasons behind the MRF share price fall?

Ans. There are several reasons behind the MRF share price fall, such as valuation concerns & decline in profits, Low investor participation, industry competitive pressure, weak financial performance, broad market weakness, and sell ratings.

2. What is the MRF share price target?

Ans. The MRF share price target is ₹1,51,749.78 with a maximum estimate of ₹1,81,000.00, and a minimum estimate of ₹118,582. According to the opinions of 9 analysts who rated MRF stock in the past 3 months, most have recommended a strong sell.

3. What are the factors that affect the MRF shares?

Ans. According to analysts, MRF’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in MRF India. Financing partnerships bridge the gap between customers and power institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.

4. What are the analysts’ predictions for MRF shares?

Ans. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates. There are varying perceptions of MRF, with the most bullish analyst valuing it at ₹180,564 and the most bearish at ₹113,350 per share.