Rs. 5 MRF Share Has Now Become Rs. 70,000!!
Introduction
Over the years, MRF shares have produced multiple fold returns for investors. When the stock reached its high on April 30, 2022, if an investor had put Rs 1 lakh in MRF shares 25 years earlier, the corpus would have been worth Rs 74.02 crore. In the previous year, MRF announced an equity dividend on its face value of Rs 10 of 600 percent (in total), or Rs 60 per share.
Being patient is one of the stock market’s guiding principles. The sky’s the limit if you have patience, which is the key to success. This is valid for equity holders who purchased MRF shares in April 1993 and held on to them. In the past 25 years, MRF (Madras Rubber Factory), which launched as a public company with a face value of Rs 10 per share, has generated returns for investors of more than 7,40,109%. The company’s stock ended at Rs 11 on April 27, 1993, vs its current BSE price of Rs 70,488. On April 30, 2018, the stock reached an all-time high of Rs 81,423.
Over the years, MRF shares have produced multiple fold returns for investors. When the stock reached its high on April 30, 2018, if an investor had put Rs 1 lakh in MRF shares 25 years earlier, the corpus would have been worth Rs 74.02 crore.
The MRF’s shares had a rapid 2,210% growth between May 11, 2009, and May 9, 2019, according to BSE statistics. In the previous five years, the stock growth consolidated to 154.83 percent. However, since the start of this year, the company’s shares have dropped 18.65 percent and 28.72 percent, respectively.
The firm declared a standalone net profit of Rs 1,097.87 crore for the fiscal year 2018–19, up slightly from Rs 1,092.28 crore the prior year. The total income for FY19 was Rs 16,254.47 crore as opposed to Rs 15,509.55 crore the year prior, representing a year over year rise of 4.80%.
Summary
Most valuable share on the Indian equities market is MRF, with a share costing Rs 54,488. This is because MRF’s stock has never been divided. Companies periodically split their shares to preserve liquidity. However, MRF has never divided its shares or issued bonus shares.
But why doesn’t MRF divide its share? Market analysts claim that the promoters may not want to grow the number of their shareholders or may only desire serious investors. This may be because a retail trader with a little investment won’t be willing to purchase MRF shares due to the high share price. Only those investors who have sound investments and long-term objectives will show interest in the stock of the firm. This will also keep a small number of board members in charge of making decisions.
- M. Mammen Mappillai founded this business as a toy balloon manufacturing facility at Tiruvottiyur, Madras, in 1946. The business made the decision to start producing tread rubber in 1952. In cooperation with the American Mansfield Tire & Rubber firm, Madras Rubber Factory Limited was founded as a private company in November 1960 and began manufacturing tyres. It was the first business in India to sell tyres to the US in 1967. The firm now produces paints, toys (Funskool), cricket bats, and a variety of rubber goods, including tyres, treads, tubes, and conveyor belts.
MRF Share Price in 1990 to 2022
One of the biggest tyre producers in the nation and the sixth-largest internationally is MRF (Madras Rubber Factory). The business has become well-known for its excellent goods and unusually high share prices.
In 1990, the MRF Share price was Rs. 5. The most expensive share in India right now is MRF, which is selling for more than 70,000 rupees.
The price history of the MRF share from 1990 to 2022 can be found in this section.
MRF Share Price History: 1990 to 2022
| Year | Price |
| 1990 | 5 |
| 1991 | 8 |
| 1992 | 9 |
| 1993 | 27 |
| 1994 | 347 |
| 1995 | 2300 |
| 1996 | 3575 |
| 1997 | 3300 |
| 1998 | 2742 |
| 1999 | 2930 |
| 2000 | 2710 |
| 2001 | 1249.95 |
| 2002 | 1000 |
| 2003 | 2550 |
| 2004 | 2822 |
| 2005 | 3500 |
| 2006 | 4800 |
| 2007 | 8968 |
| 2008 | 7340 |
| 2009 | 6890 |
| 2010 | 9824 |
| 2011 | 7950 |
| 2012 | 12850 |
| 2013 | 20225 |
| 2014 | 39499 |
| 2015 | 46399 |
| 2016 | 54650 |
| 2017 | 74500 |
| 2018 | 81425.95 |
| 2019 | 67467 |
| 2020 | 81249.4 |
| 2021 | 98599.95 |
Note:
- The MRF share price listed in the table is the highest share price or approximate price for that given year.
- There is no data available for this time period, although the share price of MRF from 1990 to 1994 is almost correct. We got this rough figure from a graph in a businesstoday piece. This could or might not be true.
MRF Share Price in 1990
In 1990, the MRF Stock price was Rs. 5. The most priced share in India right now is MRF, which is selling for more than 70,000 rupees.
MRF Share Price in 2020
- The MRF Share price reached its maximum point in 2020 at 81249.40. MRF Share price was 66199 when it first debuted in 2020 and it closed at 75750.45. Additionally, MRF’s lowest price in 2020 was 4991510.
- The most expensive stock in India is MRF, which trades for more than 70,000 rupees. Because MRF shares have not yet been divided, their share price is unreasonably high.
- K. M. Mammen Mappillai created the Madras Rubber Factory (MRF), an Indian multinational manufacturing firm, in Tiruvottiyur, Madras, Tamil Nadu, India in 1946. India’s Tamil Nadu state includes Chennai as its capital.
- The main items produced by MRF are tyres, toys, sporting goods, conveyor belts, paints, and coats.
- If you carefully examine the list above, you can find an essential lesson.
- The majority of the significant increases have occurred recently. Observe how the stock reached the 5000, 6000, 7000, and 8000 levels in October 2007 alone.
- The bull market had just reached its height at this point. Each stock was growing or tripling in value. In the frenzy of one of the largest bull markets the nation had ever seen, some investors had offered 50-100x returns.
- It happened in 2008. MRF, however, exceeded its prior peak in September 2010.
- In July 2018, it reached a high of 81,191 per share after crossing the 50,000 threshold in September 2016.
Following that, the stock went through a protracted period of consolidating, commonly known as a time correction. The stock crossed its prior high three years later, in the first month of 2021, and then abruptly embarked on a record-breaking rampage. In less than two weeks, it reached 85k, 90k, 95k, and nearly reached the 1 lakh level.
No Gain without Pain
- Without experiencing the ups and downs of the stock market, it is hard to succeed financially.
- The capacity to persevere through challenging times is the defining quality of a successful long-term investor.
- His belief in the firm will be put to the test several times; this is true for every stock. It makes no difference if it is Reliance or Amazon, the most valuable corporation in the world.
Each investor will undergo testing.
- India’s top tyre company is MRF. Even before India gained its independence, it was created in 1946, more than seven decades ago.
- However, the stock has wiped out the riches of investors who bought at high points but were unable to stay on when the price collapsed by 90%.
- At the same time, investors who purchased firm shares following significant corrections have amassed enormous riches.
- From more than 3500 in 1996 to 500 in 2001, the stock fell precipitously.
The stock similarly plummeted, falling from 8000 in 2007–2008 to little around 1500.
An investor who made investments in the 1990s had to see his fortune decline by 70–80% several times. He would have sold at the lowest and afterwards regretted his choice if he had lost faith in the firm at a time when business channels were presumably urging exits.
Typical Mistakes that Derail Share Recovery
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Stock Certificates’ Degrade over Time
When the shares are physically present, the transfer of certificates usually takes effect. When actual shares are damaged for whatever reason, the transfer of shares becomes virtually laborious.
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Certificates Being Lost
Securities have existed in physical form up to the advent of Demat trading, which makes management difficult because they can swiftly degrade with time or get lost or misplaced. This inherently puts shareholders at risk since it makes it impossible for them to get their shares back.
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Failure To Submit Transfer Deed
There have been several instances when the transferee successfully bought the shares but neglected to give the authorities the transfer document. They are unable to give the share transfer legal effect as a result. Therefore, in order to transfer shares successfully, a transfer document must be submitted.
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Inconsistency in the Transferor’s Signature
Another significant barrier that makes share transfers a difficult task is the mismatch of signatures. In this case, the transferor must consult an expert and act appropriately.
For a seamless recovery of lost shares, contact MUUDS.
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- Transfer of shares
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- Transmission Of Shares
- Transfer Deed
We’ll help you get your IEPF unclaimed shares back. The Following Are Some Notable
MUDS Management Services
Service 1: Transmission of shares
It is the legal procedure through which ownership of a share is transferred from the original holder to a claimant or legal heir, save in cases of natural transfer, such as insolvency, death, marriage, or insanity.
The applicant or the rightful successor becomes the legitimate owner of the shares following the successful transmission of the shares. These people are also entitled to the rights attached to the shares.
The standard documents used for the transfer of shares are listed below:
- prescribed share transmission application form
- a legitimate duplicate of the original holder’s death certificate
- Signature of the claimant, lawful heir, or successor PAN copy of the succession certificate, probate of the will, or letter of administration (self-attested)
Service 2: Transfer of shares
The intended transfer of possession of the IEPF Claims between the Transferor and the Transferee is essentially what is meant by a transfer of shares. The transferor’s obligation ends after this procedure is finished, and it is transferred to the share receiver. The transfer deed is the legal document used to transfer the shares.
Service 3: Transfer of IEPF unclaimed shares and dividend
When a firm produces a profit, the profit that is made accessible to shareholders is referred to as a dividend. Depending on how many shares they own in the firm, shareholders receive different dividend valuations. As previously stated, if unclaimed dividends go unclaimed for seven consecutive years, they are transferred to the Investor Education and Protection Fund (IEPF) account. Shareholders have the option to recover such securities, thanks to SEBI.
Typical Mistakes that Prevent Securities Claims
One of the main causes of failed share transfers is improper execution. Similar to this, fraud and subpar legal counsel are frequent obstacles to the legitimate transfer of shares.
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Erroneous shareholder records
The inability of the security holders to collect dividends on their stocks may be caused by inaccurate information in the company’s records. Companies in this situation would designate dividends to a different account and prevent holders from accessing them.
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Unclaimed Bonus Shares
As an added perk, the corporation issues bonus shares to its shareholders. Such shares shall remain unclaimed if the original holder was unable to register the apt in the records due to non-transfer, non-transmission, etc. of the shares. When a problem like this goes unresolved for a while, it gets transferred to another account. Shareholders must follow the statute’s procedure in order to recover such shares.
Conclusion
The tyre maker reported a 14.91% decrease in its standalone net profit during the January-March quarter, coming in at Rs 293.83 crore as opposed to Rs 345.32 crore during the same period previous year. However, compared to Q4FY18, when operating revenue was just Rs 3,835.50 crore, Q4FY19 saw an increase to Rs 4,073.45 crore.
MRF announced an equity dividend worth Rs 60 per share, or 600 percent, on its face value of Rs 10 during the course of the previous year. The dividend yield at the present share price of Rs 54,488 is just 0.11 percent, which is extremely low when compared to the share price.