MRF stock price: India's first 6-digit stock; one share costs ₹1 lakh

Tyre manufacturer MRF has hit a new milestone, with one share costing ₹1 lakh. This is the first company to achieve this in India. The shares rallied 1.4% and crossed ₹1 lakh mark hitting ₹1,00,300 intra-day, before sliding back down to around ₹99,500.

The tyre manufacturer has outperformed the market by gaining 14% in the calendar year so far. Comparatively, the sensex has gained 3% in the same period. While the benchmark indices spiked 19%, the MRF stocks rallied 46% in the past one year.

As per Economic Times, earlier in May, MRF had fallen short of just Rs 66.50 to hit the Rs 100,000 mark in the spot market but had crossed the psychologically-important level in the futures market on May 8.

MRF stock is followed by Honeywell Automation whose stocks are now sold at Rs 41,152. This is followed by Page Industries, Shree Cement, 3M India, Abbott India, Nestle and Bosch.

However, the high price tag doesn't make MRF the most expensive stock in India. This is because investors value stocks on metrics like price to earnings (PE) or price to book value (PE). The shares were trading at a PE 55.2 times earnings on a trailing 12-month basis.

As per CNBC-TV18, the Chennai based tyre manufacturer hit the Rs 10,000 mark on 12 February 2012. Since then, the stock has gained 900%. The stock reached Rs 90,000 mark for the first time on January 20, 2021 and it has taken more than 2 years for it to reach Rs 1 lakh mark.