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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 quality company, based on a 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 neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways . 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 15.2% , indicating slower growth.
Q.2 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 above its 5 year median of 17.5% , indicating increasing margins.
Q.3 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 18.26% indicating increasing margins.
Q.4 Net Profit Margin of MM Forgings Ltd?
MM Forgings Ltd Net Profit Margin is 9.23% for FY-2025 , is above with its 5 year median of 8.31%, indicating increasing margins.
Q.5 Return on Asset of MM Forgings Ltd?
MM Forgings Ltd Return on Asset is 6.22(x), which is below its 5 year historical median of 6.79(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of MM Forgings Ltd?
MM Forgings Ltd Return on equity is 15.58% for FY-2025 , which is below its historical median of 17.02%, indicating the business is making worse use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value preservation .
Q.8 Cash conversion cycle of MM Forgings Ltd?
MM Forgings Ltd Cash conversion cycle is 117 , above its historical median of 66 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
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 , 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, indicating the business is not able to service its debt comfortably.

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 14.01% , indicating faster growth and gaining its market share.

Valuation & price assessment

Q.1 Stock return of MM Forgings Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 14.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.5% 13.7% 2.6% 34%
Q.3 Valuation ratios of MM Forgings Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 20.5 31.87 50.79
Price to Book 2.09 1.72 3.87
Price to Sales 1.42 1.39 1.86
EV to EBITDA 10.27 10.32 16.47

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