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INVESTMENT INSIGHTS

Check Before You Invest : MM Forgings Ltd

BSE: 522241 NSE: MMFL ISIN: INE227C01017
  |   Sector:  Automobiles   |   Industry:  Forgings

Snapshot

Q.1 Which industry/sub-sector does MM Forgings Ltd belong to?
MM Forgings Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.
Q.2 Is MM Forgings Ltd a good quality company?
MM Forgings Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.
Q.3 Is MM Forgings Ltd undervalued or overvalued?
MM Forgings Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is MM Forgings Ltd a good buy now?
MM Forgings Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of MM Forgings Ltd?
MM Forgings Ltd revenue growth is -3.3% for FY-2025, which is below its 5-year CAGR of 15.22%, indicating slower growth.
Q.2 Return on capital employed (ROCE) of MM Forgings Ltd?
MM Forgings Ltd Return on capital employed is 12.5% for FY-2025, which is below its 5-year historical median of 13.5%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.
Q.3 Return on Asset of MM Forgings Ltd?
MM Forgings Ltd Return on Asset is 6.22%, which is below its 5-year historical median of 6.79%, indicating deteriorated asset utilization efficiency.
Q.4 Return on Equity (ROE) of MM Forgings Ltd?
MM Forgings Ltd Return on equity is 15.58% for FY-2025, which is below its 5-year historical median of 17.02%, indicating the business is making worse use of its shareholders capital.
Q.5 Cash conversion cycle of MM Forgings Ltd?
MM Forgings Ltd Cash conversion cycle is 117 days, above its 5-year historical median of 72 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover 0.67 0.82
ROE 15.58 17.02
ROCE 12.5 13.5
Cash Conversion Cycle 117 days 72 days
Q.6 Gross Profit margin of MM Forgings Ltd?
MM Forgings Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.8% for FY-2025, which is in line with its 5-year median of 17.5%, indicating stable margins.
Q.7 Operating Profit Margin of MM Forgings Ltd?
MM Forgings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.91% for FY-2025, which is above its 5-year median of 18.29% indicating increasing margins.
Q.8 Net Profit Margin of MM Forgings Ltd?
MM Forgings Ltd Net Profit Margin is 9.23% for FY-2025, is in line with with its 5-year median of 8.95%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin 17.8 17.5
Operating Profit Margin 19.91 18.29
Net Profit Margin 9.23 8.95
Q.9 Debt to Equity ratio of MM Forgings Ltd?
MM Forgings Ltd Debt-to-Equity ratio is 1.27, which is above with the industry average of 0.49, indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of MM Forgings Ltd?
MM Forgings Ltd Debt to cash flow from operations is 6.27, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MM Forgings Ltd?
Promoters hold 56.34% of the MM Forgings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MM Forgings Ltd vs industry peers?
MM Forgings Ltd revenue CAGR is 15.22%, compared to the industry median CAGR of 14.05%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth -3.3 14.1
Gross Profit Growth -3.3 25.5
Operating Profit Growth 2.1 18.7
Net Profit Growth -6.2 26
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.67 0.92
ROE 15.58 15.17
ROCE 12.5 14.66
Cash Conversion Cycle (days) 117.41 112

Valuation & price assessment

Q.1 Stock return of MM Forgings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR		 15% 16.9% 5% 43.1%
Q.3 Valuation ratios of MM Forgings Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 23.37 17.44 33.04
Price to Book 2.39 3.08 3.77
Price to Sales 1.62 1.60 1.87
EV to EBITDA 11.25 10.16 16.81

Check more companies

1. Happy Forgings
2. Ramkrishna Forgings
3. Balu Forge Industrie
4. MM Forgings
5. Amic Forging
6. Tirupati Forge
7. Kalyani Forge
8. LGB Forge
9. Krishanveer Forge
10. Hilton Metal Forging

Check trending companies

1. Aarti Industries Ltd.
2. Ajanta Pharma Ltd.
3. Vardhman Textiles Ltd.
4. Tata Elxsi Ltd.
5. Shree Cement Ltd.
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