MRF share price soars past Rs. 50,000 mark

28th September 2016 proved to be a historic day for MRF Ltd, as the company's stocks experienced a gain of 7.29% to cross the Rs. 50,000 mark on the Bombay Stock Exchange (BSE). It eventually retreated a bit to close the day at Rs. 49,989, still showcasing a gain of 7.27%. After Wednesday's rally, the company's market-cap was Rs. 21,201 Crore. MRF Ltd. is currently the most expensive stock listed on the BSE.

MRF stocks have seen a surge of around 650% in the last five years, while the last one year saw the company being traded in a wide range of Rs. 30,000 - 50,000. Interestingly, MRF soared by 20.93% during the past year, as compared to BSE's gain of 10.45% in the same period. The company also registered its highest-ever earnings per share of Rs. 1,157.5 during the last quarter.

Market experts suggested that the huge stock price was a result of rising demand from OEMs, higher market share in the replacement market and a limited number of shares available for trading.

MRF is the third company to cross the Rs. 50,000 stock price mark in the Indian market. Government owned MMTC and Orissa Mineral were the first two to achieve this level in 2007 and 2010, respectively.

Source: Economic Times