Mumbai: The share price of tyre manufacturer MRF Ltd hit an all-time high of Rs 50,000 on Wednesday in the intra-day trade to become the most expensive stock on the domestic bourses.
The stock zoomed 7.29 per cent or Rs 3,400 in the intra-day trade before ending the day at Rs 49,734.45, up 6.73 per cent or Rs 3,135.35 from its previous day’s close.
Analysts attributed the sudden spurt in the stock prices of tyre manufacturers to the softening prices of natural rubber, which accounts for almost 40 per cent of the total input cost. MRF enjoys an overall market share of 24 per cent in the domestic tyre market and 70 per cent in the two-wheeler segment.
As per experts, the entire tyre industry underwent a re-rating of valuations last year on account of the drop in the prices of natural rubber.
