Experts predict that the stock price of the tire manufacturing company could fall by up to 30%. In such a case, it is advised to sell the stock as a 30% decrease could be significant. In the first quarter of the financial year 2024-25, the company’s profit dropped by 3% year-on-year to ₹571 crore.

Amidst a booming stock market, shares of the tire manufacturing company took a severe hit on Friday. During trading, the stock fell by more than 3%, dropping to around ₹4800.

Brokerage Kotak Institutional Equities estimates that the stock could fall as low as ₹97,000. Therefore, it is recommended to sell the stock to avoid a potential 30% drop. However, Kotak Institutional noted that the market’s rise is a positive sign for the tire manufacturing company.

The previous closing price of MRF Limited shares was ₹1,40,287. On Friday, it dropped to around ₹1,35,500, representing a decrease of about ₹4800. In February 2024, the stock was at ₹1,51,283, which was its 52-week high. The 52-week low was ₹1,04,750 on August 14, 2023.

In the first quarter of the financial year 2024-25, MRF’s profit decreased by 3% year-on-year to ₹571 crore. Last year, during the same period (April-June), the company’s profit was ₹589 crore. During this period, total revenue increased to ₹7,280 crore from ₹6,515 crore in the same quarter last year.

The Sensex, based on 30 stocks, closed at 79,705.91 with an increase of 819.69 points or 1.04%. The Sensex opened higher and rose to 1,098.02 points during trading.

The market remained upbeat due to buying in major companies like Reliance Industries and Infosys amid global market gains. With this increase, the market capitalization of BSE-listed companies rose by ₹4,46,308.99 crore to ₹4,50,21,816.11 crore.