Mid Tyres
Market Cap
₹54,660 ₹54,660 Cr.
P/E
22.63
PEG
1.56
PEG = P/E ÷ 5yr Forward EPS CAGR
5yr Forward EPS CAGR Thesis - Base Case

- The base-case thesis depends on raw material costs stabilising at 60-61% of revenue and domestic replacement demand growing ~8%, with export acceleration from EU/US trade agreements providing the upside trigger.- Bull case is driven by a 5-8% decline in raw material costs, early signing of trade deals, and faster EV adoption, lifting both revenue mix and margins.
- Bear case is triggered if Middle East conflict escalates raw material costs above 62% concurrently with a sub-normal monsoon hitting rural demand, and trade negotiations stall.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • The base-case thesis depends on raw material costs stabilising at 60-61% of revenue and domestic replacement demand growing ~8%, with export acceleration from EU/US trade agreements providing the upside trigger.
  • Bull case is driven by a 5-8% decline in raw material costs, early signing of trade deals, and faster EV adoption, lifting both revenue mix and margins.
  • Bear case is triggered if Middle East conflict escalates raw material costs above 62% concurrently with a sub-normal monsoon hitting rural demand, and trade negotiations stall.
Bear : 0.1% CAGR ₹5,441 Cr
Base: 10.8% CAGR ₹9,022 Cr
Bull: 14.6% CAGR ₹10,669 Cr
Management Credibility Report
TRACK RECORD
  • Management is highly credible on concrete financial commitments — dividends, debenture redemption, and rating actions are delivered exactly as promised.
  • Qualitative commentary on demand and margin recovery carries a timing gap, with cost-recovery taking years instead of the indicated 'coming months,' making such statements optimistic on timing.
  • The pattern is deliberate conservatism: the company avoids numerical targets and parks significant cash (Rs. 4,028 Cr in bank deposits) rather than accelerating capex, creating a gap between the stated expansion narrative and actual capital allocation.
Met : 10
Progress: 3
Missed : 0
Risk Probe Report
WORST-CASE SCENARIO
  • MRF's forensic profile is clean: cash conversion is genuine (OCF/EBITDA 0.85x), the balance sheet is near debt-free, and all audit opinions are unqualified.
  • Two watch-list items — a 46% YoY rise in trade payables acceptances and a Rs. 622 Cr CCI penalty under appeal — do not alter the clean assessment but warrant monitoring.
  • The most severe stress scenario is a Chinese tyre import surge capturing 15% of the replacement market, which would structurally threaten pricing power and compress margins.
High Risk : 0
Medium Risk : 0
Low Risk : 17
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