Talking about the best tyres, there are two top tyres providers in India, MRF & CEAT, that have been in this game for a long time now!
There are certain factors that remain a top concern not only for car owners but for two vehicle owners, truck owners, etc. while making a choice to select tyres for their vehicles. Well, to figure out those factors and to determine which one among the two is doing better, which one is budget-friendly, etc.
MRF Vs CEAT: Company Overview
(A) MRF
MRF, an acronym used for Madras Rubber Factory, is India’s top tyre manufacturing company, established in 1946 by K M Mammen Mappillai, based in Chennai (earlier Tiruvottiyur), Tamil Nadu, India.
Initially the founder started the company as a toy balloon manufacturing unit, but later on in 1952, the company made its way into the world of tyre manufacturing.
Currently, as of latest 2023, according to the UK based brand evolution company, MRF is considered as the most valued Indian tyre brand that has scored high in the sustainability perception value. It is the only Indian tyre manufacturer brand to feature in the top 10 tyre manufacturing companies in the world.
(B) CEAT
Cavi Elettrici e Affini Torino known as CEAT, is another Indian multinational tyre manufacturing company founded by Virginio Bruni Tedeschi in 1924 in Turin, Italy. Since then it has come a long way, and was established in 1958 in India, and is owned by RPG Group, one of the top business groups in India.
CEAT with a vision of making mobility safer and smarter, steps into both domestic as well as international markets. CEAT tyres are said to perform well in both summer and winter seasons and come with unique strong road traction that helps to make a strong hold on the roads.
(C) Company Comparison
| Parameters | MRF | CEAT |
| Founded | 1946 | 1958 (India) |
| CEO | K.M. Mammen | Arnab Banerjee |
| Headquarter | Chennai, Tamil Nadu, India | Worli, Mumbai, India |
| Type | Public | Public |
| Tagline | ‘MRF Tyres. Tyres with muscle’ | Born Tough |
| Services provided | Manufactures various tyres for four wheeler passenger cars, two–wheelers, off–the–road tyres and airplane tyres, MRF ZVTS and MRF Wanderers for cars and SUVs, MRF Meteor all terrain tyres, MRF Steel Muscle for trucks and buses, and provides tyre replacement too. | Manufactures tyres for heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters as well as auto-rickshaws and provides tyre replacement too. |
| Areas served | 2500 distributors in India, & serves in more than 75 countries globally. | Provides services in over 100+ countries. |
In the above table we have seen the company analysis of both MRF vs CEAT, and how much is their current market capitalization.
Now let’s start with the comparative analysis of MRF & CEAT.
Comparative Analysis of MRF Vs CEAT
Here, we’ll consider factors like its income valuation, cash flow management, its shareholding %, etc. These factors will help in knowing better between the two.
Business Comparison of MRF vs CEAT
| Parameters | MRF | CEAT |
| Market Cap (2023) India | Rs 57,560.52 Crores | Rs. 10,731.21 Crores |
| Revenue (2023) | Rs.2,32,612 million | Rs1,13,337 million |
| CAGR grown % | 12.44% | 12.86% |
| Total wages (2023) | Rs.15,594 million | Rs.7,352 million |
| Total income (2023) | Rs.6,287.82 crores | Rs.3,063.79 crores ` |
| Total expenses (2023) | Rs.5,411.5 crores | Rs.2,721.6 crores |
| Profit (2023) | Rs.586.6 crores | Rs.208.0 crores |
| Employee count (2023) India | 10,001-50,000 | 5,001-10,000 |
From the above business analysis of MRF vs CEAT, we can clearly see that MRF leads in the game by leaving behind CEAT in many domains. In terms of market cap, MRF secures a top position with a market cap of Rs.50,024.03 crores than CEAT and makes a huge difference of Rs.40,624 crores.
The income difference is equally highlighted between the two, MRF making its total income leading to a good major number of Rs.6,287.82 crores, compared to CEAT number of Rs.3,063.79 crores. Apart from this the total expenses, profit, total wage increase, revenue increase follow the same pattern.
Financials Comparison of MRF vs CEAT
| Parameters | MRF | CEAT |
| EBIT (2023) | Rs.876.15 crores | Rs.342.10 crores |
| EBIT % Growth | 0.56 | 26.98 |
| Net profit margin % | 9.33 | 6.79 |
| Profit increased % | 16.4 | 31.1 |
| Earnings per share | Rs.1,813.6 | Rs.45.1 |
| Gross profit (2023) | Rs.23,966 million | Rs.9,467 million |
| Gross profit margin % | 10.4 | 8.4 |
| Net sales (2023) | Rs.230,085 million | Rs.113,149 million |
| Net fixed assets (2023) | Rs.151,257 million | Rs.69,379 million |
| Total assets (2023) | Rs.243,694 million | Rs.96,277 million |
| Return on assets % | 4.5 | 4.4 |
| Return on equity % | 5.2 | 5.3 |
| Return on capital % | 9.0 | 10.2 |
From the above financials, we can see the key highlights of numbers between MRF vs CEAT. MRF secures a notable net profit margin of 9.33% recording a good profit expenses. While on the other hand, CEAT recorded a percentage of 6.79.
In some factors like return on capital, CEAT has a slightly higher percentage of 10.2 % than MRF, which has 9.0%. If we see collectively at the financials above, MRF shines as a bright name in the financials numbers and is bigger in comparison to CEAT.
MRF Vs CEAT: Share Price Returns Performance
Here, we’ll see the returns on shares of both the companies over different time spans with their CAGR returns.
| Name of the Company | 1 Year Returns | 3 Year Returns | 3 Year CAGR | 5 Year Returns | 5 Year CAGR |
| MRF | 29.43% | 52.09% | 15.03% | 79.0% | 12.44% |
| CEAT | 26.44% | 98.33% | 25.90% | 81.95% | 12.86% |
Both the companies differ in their share price returns over different time spans, and seeing the 5 year CAGR, CEAT has a slight increase in their numbers than MRF.
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Cash Flow of MRF vs CEAT
| Parameters | MRF | CEAT |
| Operations | Rs.27,555 million | Rs.12,055 million |
| Investments | Rs.-19,235 million | Rs.-8,491 million |
| Net cash flow | Rs.-59 million | Rs.369 million |
From the above table, it can be stated that MRF has a higher cash flow from its operations as compared to CEAT, while net cash flow of MF is Rs.-59 million while CEAT has a notable and good number of Rs.369 million. MRF has paid a dividend of Rs.175.0 per share while CEAT paid a dividend of Rs.12.0 per share.
Summing Up: MRF vs CEAT: Which One Is Better?
In this discussion of MRF Vs CEAT, MRF takes the center stage. MRF shines as a bright name in the tyre manufacturing industry. With its high market cap, revenue earnings, net sales, profit margins, etc. MRF leads the entire show.
As per the latest 2023, MRF is the only Indian company to enter into the list of top 10 tyre manufacturing companies globally and is ranked at 83.2 position out of 100.
Was aware that MRF is a big name in the tyre industry, but didn’t knew that it has entered into the list of top tyre companies globally!