Check Before You Invest : MM Forgings Ltd

Q: 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: Is MM Forgings Ltd a good quality company?

MM Forgings Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is MM Forgings Ltd undervalued or overvalued?

MM Forgings Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 21.76, Historic Median: 17.44. Price to Book, Current: 2.22, Historic Median: 3.08. Price to Sales, Current: 1.51, Historic Median: 1.60. EV to EBITDA, Current: 10.7, Historic Median: 10.16

Q: 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

Q: 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: 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: 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: Net Profit Margin of MM Forgings Ltd?

MM Forgings Ltd Net Profit Margin is 9.23% for FY-2025, is in line with its 5-year median of 8.95%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 17.8, Historic Median: 17.5. Operating Profit Margin (%), Current: 19.91, Historic Median: 18.29. Net Profit Margin (%), Current: 9.23, Historic Median: 8.95

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is MM Forgings Ltd undervalued or overvalued?

MM Forgings Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	21.76	17.44
Price to Book	2.22	3.08
Price to Sales	1.51	1.60
EV to EBITDA	10.7	10.16

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.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 18.29% 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 in line 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	0.67	0.82
ROE (%)	15.58	17.02
ROCE (%)	12.5	13.5
Cash Conversion Cycle	117 days	72 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of MM Forgings Ltd?

MM Forgings Ltd Debt-to-Equity ratio is 1.27, which is above the industry average of 0.54, 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

D: Promoter shareholding and pledge status of MM Forgings Ltd?

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)

E: How does MM Forgings Ltd performance compare with that of its Peers?

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 10.29%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-3.3	10.3
Gross Profit Growth (%)	-3.3	25.5
Operating Profit Growth (%)	2.1	18.7
Net Profit Growth (%)	-6.2	27.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.67	0.92
ROE (%)	15.58	14.91
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 14.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	14.8%	13.3%	1.6%	24.4%

Q.2 Valuation ratios of MM Forgings Ltd vs historical?

The current P/E ratio of 21.76 is higher than its historical median of 17.44, indicating that the stock is trading above its historical average valuation.

Q.3 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	21.76	17.44	33.04
Price to Book	2.22	3.08	3.77
Price to Sales	1.51	1.60	1.87
EV to EBITDA	10.7	10.16	16.91

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Check Before You Invest : MM Forgings Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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