MRF, the largest tire manufacturer in India, has achieved a significant milestone by becoming the first company in the country whose share price reached Rs 1 lakh. On June 13, 2023, MRF's share price rose by 1.5% during early trading, surpassing Rs 1 lakh and reaching a peak of Rs 1,00,439.95 per share. At 9:45 am, the shares were trading at Rs 1,00,066 apiece, marking a 1.1% increase. This positive trend continued for the third consecutive day, with MRF's shares gaining 3.5% during this period. Over the past year, MRF's shares have surged by an impressive 45.92% and have risen by 13% so far this year.

The strong performance of MRF can be attributed to its remarkable financial results for the quarter ending March 31, 2023. The company's net profit showed an outstanding year-on-year increase of 161.6% and a sequential increase of 142.7%, reaching Rs 410.66 crore. Furthermore, revenue from operations rose by 10.1% year-on-year, amounting to Rs 5,725.39 crore in the same period. MRF's margin also expanded significantly to 14.7% in Q4 FY23 compared to 10.2% the previous year, while EBITDA experienced a substantial 60% year-on-year jump, reaching Rs 843.1 crore. Additionally, MRF recommended a final dividend of Rs 169 per share for FY23, bringing the total dividend for the financial year to Rs 175 per share.

Although MRF's high share price is noteworthy, it is important to note that it does not necessarily make it the most expensive stock in India. Investors typically consider metrics such as price to earnings (PE) or price to book value (PE) when evaluating securities. On a trailing 12-month basis, MRF shares were trading at a PE ratio of 55.2 times earnings. Retail investors sometimes mistake the stock price for its valuation, leading to the misconception that MRF is the most expensive stock in India.