MM Forgings Ltd Stock Analysis

BSE: 522241 | NSE: MMFL | Forgings | Small Cap

BSE Share Price 06-Dec-2022 18:01
899.45 3.85 (0.43%)

DeciZen - Make an Informed Decision on MM Forgings

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

MM Forgings Price Chart

P/E Ratio (SA) :
17.77
Market Cap :
2,162.1 Cr.
52-wk low :
646
52-wk high :
1,057.2
Bole Toh?

1. Is MM Forgings Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that MM Forgings Ltd is a average quality company.

2. Is MM Forgings Ltd undervalued or overvalued?

The key valuation ratios of MM Forgings Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is MM Forgings Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of MM Forgings Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of MM Forgings:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
MM Forgings Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 9.5%10.1%14.7%12.1%9.8%12%10.6%6.4%6.4%9.3%-
Value Creation Index -0.3-0.30.1-0.1-0.3-0.1-0.2-0.5-0.6-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3614115035024786219047277261,1051,263
YoY Gr. Rt. %-13.9%22.1%-0.1%-4.8%29.7%45.7%-19.5%-0.2%52.2%-
Adj EPS 10.111.720.920.81828.333.719.219.33850.4
YoY Gr. Rt. %-15.5%79%-0.9%-13.3%57.5%18.9%-43.2%0.8%96.8%-
BVPS (₹) 71.381.198.6115.8130.3152.9180.7194207.3239.3264.7
Adj Net Profit 24.528.250.550.143.468.481.346.246.691.8122
Cash Flow from Ops. 57.535.3106123107-13.632.627310.2147-
Debt/CF from Ops. 2.54.31.81.72.1-2821.12.160.14.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.2%18.2%6.9%52.2%
Adj EPS 15.8%16.1%4.1%96.8%
BVPS 14.412.99.815.4
Share Price 32.9% 14.1% 37.7% 23%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 15.115.423.319.414.62020.210.29.61720
Op. Profit Mgn % 1619.22221.519.420.119.217.216.718.318.5
Net Profit Mgn % 6.86.910.1109.11196.46.48.39.6
Debt to Equity 0.90.80.80.80.711.61.21.21.20.6
Working Cap Days 15714011510598125142179185154193
Cash Conv. Cycle 81705846394664696166154

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.00%

Sales growth is good in last 4 quarters at 28.94%

Sales growth has been subdued in last 3 years 6.91%

Net Profit has been subdued in last 3 years 4.10%

Debt to equity has increased versus last 3 years average to 1.18

Latest Financials - MM Forgings Ltd.

Standalone Consolidated
TTM EPS (₹) 50.4 49.3
TTM Sales (₹ Cr.) 1,263 1,305
BVPS (₹.) 264.7 257.2
Reserves (₹ Cr.) 615 597
P/BV 3.38 3.49
PE 17.77 18.19
From the Market
52 Week Low / High (₹) 646.00 / 1057.20
All Time Low / High (₹) 2.69 / 1057.20
Market Cap (₹ Cr.) 2,162
Equity (₹ Cr.) 24.1
Face Value (₹) 10
Industry PE 29.8

Management X-Ray of MM Forgings :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of MM Forgings

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

MM Forgings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of MM Forgings on 06-Dec-2022 18:01 is : 899.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 06-Dec-2022 18:01 the market cap of MM Forgings stood at ₹ 2,162.1.
The latest PE ratio of MM Forgings as of 06-Dec-2022 18:01 is 17.77.
The latest PB ratio of MM Forgings as of 06-Dec-2022 18:01 is 3.38
The 52-week high of MM Forgings is ₹ 1,057.2 and the 52-week low is ₹ 646.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of MM Forgings is ₹ 1,263 ( Cr.) .

About MM Forgings Ltd

The journey of MM Forgings started as Madras Motors Limited in year 1946 as dealers of “Royal Enfield Motor Cycles, UK” in India. 1960s and 70s witnessed a boom in the automotive industry in India and all over the world. With the foresight and vision of their founding Managing Director S EKrishnan, they forayed into the forging business with a forge shop in Singampunari (Plant 1), Tamilnadu in year 1974 with a capacity of 780 MT per Annum.

By the mid eighties, their forging business expanded steadily and their capacity reached 3000 MT per annum. Their dealership business was closed in theyear 1990. In year 1991, they have launched a new state of the art forging facility at Viralimalai, Tamil Nadu with a capacity of 3000 MT per annum.

They have rechristened their self as “MM Forgings Limited” in year 1993. MM as Madras Motors stands to show their roots. In year 1994, they had a major capacity addition at their Viralimalai plant(Plant 2) to 12000 MT per annum with funding from their initial public offering and financial participation from major financial institutions.

They consolidated their business during the period of 1994-2002. They have secured the confidence of major automobile manufacturers around the world. They took over Gears India Limited, Chennai, India in 1999 and established it as their Plant 3. This is a machining unit. They took over this company to cater to the demands of their customers to supply forgings in machined condition.

As the demand rose steadily over the years, they started a roll shop at Padappai (Plant 4) near Chennai in year 2002 to manufacture transmission shafts. In the same year the company commenced a wind farm near Panakudi, Tamil Nadu for generating power through non conventional methods to hedge burgeoning power costs.

To consolidate their operations, they have shifted their machine shop from Plant 3 to their Padappai facility. They have added forging capacity in this facility by adding 3 press lines in the year of 2004-2005. During these years, they have also invested heavily on their machine shop by adding CNC machines, Vertical machining centers, Horizontal Machining centers, Special purpose machines thereby developing into a full fledged machining facility.

MM Forgings has the expertise in forging wide variety of components. The company is flexible to volumes and we intend to provide one stop shop for our customers with value added services.

Product range of the company includes:

MM Forgings manufactures steel forgings in raw, semi-machined and fully machined stages in various grades of Carbon, Alloy, Micro-Alloy and Stainless Steels in the weight range of 0.20 Kg to 60 Kg.The company caters to the forging requirements of almost all sections of industry.

Milestones:

  • 1945- Incorporated as 'The Madras Motors Ltd' to trade Royal Enfield Motors of U.K.
  • 1974 -Forge Shop division started at Singampunari - 780 MTPA
  • 1974-90 -Forging activities quickly overtake dealership as Plant 1 steadily reaches 3000 MTPA capacity by mid-eighties.
  • 1990 -Last dealership of motorcyles (at Madras) closed down.
  • 1991 -Plant 2 commissioned at Viralimalai - 3000 MTPA
  • 1993 -Renamed as MM Forgings Limited to reflect the company's line of activity.
  • 1994 -Expansion of Plant 2 to 12000 MTPA with funding from IPO, IDBI & ICICI
  • 1994-ISO 9002 certified by NQA(now EAQA of UK)
  • 1999 -QS 9000 certified by AQA. Take Over of Gears India, Chennai. Established as Plant 3
  • 2002- Establishment of P4 with Roll Shop at Padappai, near Chennai to cater to the growing demands of customers for rolled forgings.Commenced Wind Farm at Panakudi (Plant 5) in Tirunelveli District for generaling power.
  • 2003 -Shifted Machine Shop to P4 to streamline operations. TPM kicked off at Plants 1 & 2
  • 2004 -Major capacity expansion to 30,000 MT with addition of 4 Press lines and expansion of machining lines. Launching High Performance Organization at Plant 4.

Achievements/ recognition:

  • Certified to ISO 9001: 2000 by NQAQSR, USA
  • Certified to QS9000 , discontinued recently
  • Recipient of EEPC (Engineering Export Promotion Council) award for export excellence for 14 consecutive years.
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