New Delhi, Nov. 11 -- Global brokerage firm Citi has maintained its bullish outlook on MRF even as the company's September-quarter performance was hit by rising raw material prices. The brokerage has retained its 'Outperform' rating on the stock with a target price of Rs.1,65,238, indicating an upside potential of 30% from the stock's Wednesday closing price of Rs.1,27,125.

Earlier this week, the tyre manufacturer reported an 18% year-on-year (YoY) increase in revenue to Rs.85.2 billion. However, higher-than-expected raw material inflation led to a 430-basis-point (bp) YoY contraction in its EBITDA margin to 10.7%. The margin pressure also resulted in a 28% YoY decline in profit after tax (PAT) to Rs.3.7 billion.

The brokerage said the ...