The stock market is a highly volatile business. Investors in the market can hit the jackpot or fall from grace at any time. From penny stocks to shares worth thousands of rupees, the market offers ample opportunities for investors. Among these, there is one company whose share price is a staggering 1.40 lakh rupees. This is the tire manufacturing giant MRF. With the price of 10 shares, you could buy a luxury car. Let's delve into the fascinating journey of MRF, from making balloons to ruling the tire manufacturing industry, and how its stock became the most heavyweight in the country.
One share worth 1.40 lakh rupees
On Thursday, the MRF Ltd share traded with a slight dip at 1,40,099.90 rupees. The company's market capitalization has reached 59,650 crore rupees. Over the past five years, MRF has more than doubled its investors' money, with its share price increasing by 86,230 rupees. In January 2024, for the first time, the company's share price crossed the 1.50 lakh rupee mark.
Started with balloon making
Before becoming the king of the tire world, the founder of the company, K. M. Mammen Mappillai, started by making balloons. Yes, Mappillai entered the business world in 1946. He began in a small shed in Tiruvottiyur, Madras, making balloons. He also manufactured industrial gloves and items made of latex. With time, he decided to expand his business, and by 1952, he founded the Madras Rubber Factory (MRF). Within just four years of entering the world of trade rubber manufacturing, the company soared and by 1956, MRF became a market leader with a 50% share of India's trade rubber market.
Source: aajtak
MRF's rise to prominence
On November 5, 1961, MRF was granted the status of a private limited company. By this time, the company was manufacturing tires and tubes for automobiles, aircraft, and bicycles in collaboration with Mansfield Tire & Rubber Company. In 1965, MRF started exporting tires to the US through its first foreign venture. The 1980s saw a transformational phase in the Indian auto sector with the advent of affordable cars like the Maruti 800. At the same time, the two-wheeler industry also gained momentum, and by 1985, MRF began manufacturing tires for two-wheelers. By 1993, the MRF business was well established, leading the market in truck, car, and bike-scooter segments.
Two decades of stock performance
Let's talk about the performance of this share. Back on August 6, 2004, the price of an MRF share was 1,548 rupees. Gradually, this stock crossed the 5,000-rupee mark by 2010. By 2012, it exceeded the 10,000-rupee threshold and by August 7, 2015, it skyrocketed to 44,922 rupees. Since then, the share has set numerous records for rapid growth.
Source: aajtak
MRF Share Makes History This Year
The year 2024 proved outstanding for the company's share. On January 17, 2024 (Wednesday), the most expensive stock in the Indian stock market, MRF, made history. During intraday trading, the company's share price increased by 10% or 13,520.7 rupees, crossing the 1.50 lakh rupee threshold. Notably, MRF's all-time high is 1,51,445 rupees, while its 52-week low is 1,01,400 rupees.
