MRF Limited

“MRF is India's dominant tyre brand with a clean balance sheet and genuine brand pricing power, but a decade of zero earnings CAGR despite ₹18,400 Cr of capex reveals a capital-intensive franchise that earns around — not above — its cost of capital; at 21x trailing P/E on cycle-peak earnings, normalised valuation is closer to 36x, implying 5-year expected returns well below Indian equity hurdle rates, and with management that shows structural indifference to minority shareholders through a 4.1% payout ratio, no buybacks, and minimal disclosure, the investment case reduces to 'decent business at a fair price' — which is not enough to displace better compounders.”