MM Forgings Ltd - Stock Valuation and Financial Performance

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

MM Forgings Share Price

880.95 15.45 1.79%
as on 28-Mar'24 13:44

DeciZen - make an informed investing decision on MM Forgings

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

MM Forgings stock performance -

mw4me loader
P/E Ratio (SA):
15.49
Market Cap:
2,089.4 Cr.
52-wk low:
800.1
52-wk high:
1,099

Is MM Forgings Ltd an attractive stock to invest in?

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 below 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 not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.1%14.7%12.1%9.8%12%10.6%6.4%6.4%9.3%10.8%-
Value Creation
Index
-0.30.1-0.1-0.3-0.1-0.2-0.5-0.6-0.3-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4115035024786219047277261,1051,4091,494
Sales YoY Gr.-22.1%-0.1%-4.8%29.7%45.7%-19.5%-0.2%52.2%27.6%-
Adj EPS 11.720.920.81828.333.719.219.3385255.9
YoY Gr.-79%-0.9%-13.3%57.5%18.9%-43.2%0.8%96.8%36.9%-
BVPS (₹) 81.198.6115.8130.3152.9180.7194207.3239.3285.3328.6
Adj Net
Profit
28.250.550.143.468.481.346.246.691.8126135
Cash Flow from Ops. 35.3106123107-13.632.627310.2147114-
Debt/CF from Ops. 4.31.81.72.1-2821.12.160.14.66.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.7%17.8%24.7%27.6%
Adj EPS 18%12.9%39.5%36.9%
BVPS15%13.3%13.7%19.2%
Share Price 30% 10% 21.2% 4.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
15.423.319.414.62020.210.29.61719.818.2
Op. Profit
Mgn %
19.22221.519.420.119.217.216.718.318.118.4
Net Profit
Mgn %
6.910.1109.11196.46.48.38.99
Debt to
Equity
0.80.80.80.711.61.21.21.21.1-
Working Cap
Days
1401151059812514217918515414889
Cash Conv.
Cycle
7058463946646961667218

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.20%

Sales growth is growing at healthy rate in last 3 years 24.67%

Net Profit is growing at healthy rate in last 3 years 39.53%

Sales growth is good in last 4 quarters at 11.96%

Debt to equity has increased versus last 3 years average to 1.09

Latest Financials - MM Forgings Ltd.

Standalone Consolidated
TTM EPS (₹) 55.9 53
TTM Sales (₹ Cr.) 1,494 1,538
BVPS (₹.) 328.6 319.3
Reserves (₹ Cr.) 769 747
P/BV 2.63 2.71
PE 15.49 16.33
From the Market
52 Week Low / High (₹) 800.05 / 1098.95
All Time Low / High (₹) 2.69 / 1098.95
Market Cap (₹ Cr.) 2,089
Equity (₹ Cr.) 24.1
Face Value (₹) 10
Industry PE 37

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4115035024786219047277261,1051,409
Operating Expenses 3323923943864967316026049031,154
Manufacturing Costs83989697122169136129188261
Material Costs176207209203258409334347504674
Employee Cost 354447475676767099109
Other Costs 3844423960775558112109
Operating Profit 7911110893124173125121202256
Operating Profit Margin (%) 19.2%22.0%21.5%19.4%20.1%19.2%17.2%16.7%18.3%18.1%
Other Income 22511121619221916
Interest 89810132633312729
Depreciation 36353639425453576068
Exceptional Items 2000000000
Profit Before Tax 38696955821095755133175
Tax 918191214271184149
Profit After Tax 295150436981464792126
PAT Margin (%) 7.1%10.1%10.0%9.1%11.0%9.0%6.4%6.4%8.3%8.9%
Adjusted EPS (₹)12.220.920.818.028.433.719.219.338.052.0
Dividend Payout Ratio (%)8%14%14%17%18%15%26%26%16%12%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 196238280315369436468500578689
Share Capital 12121212122424242424
Reserves 184226268303357412444476553665
Minority Interest0000000000
Debt137175191183341631491532591651
Long Term Debt358398108168396335297346329
Short Term Debt103929274173234157235245322
Trade Payables1628302962487298115159
Others Liabilities 3650377480102108132155172
Total Liabilities 3854905386018521,2171,1401,2631,4391,670

Fixed Assets

Gross Block4384995726687551,0321,1501,1711,2641,393
Accumulated Depreciation238273309348390444497554614682
Net Fixed Assets200225262320365588653618650712
CWIP 711301427399173659
Investments 000045553350
Inventories76797366125188131169193288
Trade Receivables29291517577912122166228
Cash Equivalents 2589121134164172174187225205
Others Assets48563650109146156146136128
Total Assets 3854905386018521,2171,1401,2631,4391,670

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 35106123107-143327310147114
PBT 38696955821095755133175
Adjustment 41423938436570707484
Changes in Working Capital -35123327-120-116155-109-33-102
Tax Paid -8-17-18-13-18-25-9-5-27-42
Cash Flow From Investing Activity -40-63-86-69-93-275-71-12-126-156
Capex -41-66-91-81-101-289-88-30-111-152
Net Investments 0000-4-100-28-17
Others 22511121516181313
Cash Flow From Financing Activity 621-5-25137249-199151723
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -848161060228-62-3749-17
Interest Paid -8-9-8-10-13-26-33-31-27-29
Dividend Paid -4-7-12-7-8-13-200-12-14
Others 25-110-189861-8483784
Net Cash Flow 164321330821338-19
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)15.9423.3119.3614.6220.0420.210.229.6217.0219.83
ROCE (%)13.8720.0816.8512.6214.714.378.388.0213.515.12
Asset Turnover Ratio1.11.150.980.840.850.870.620.60.820.91
PAT to CFO Conversion(x)1.212.082.462.49-0.20.415.930.211.60.9
Working Capital Days
Receivable Days28211612222723344851
Inventory Days65565553566380756062
Payable Days47385053644965897774

MM Forgings Ltd Stock News

MM Forgings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of MM Forgings on 28-Mar-2024 13:44 is ₹881.0.
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 28-Mar-2024 13:44 the market cap of MM Forgings stood at ₹2,089.4.
The latest P/E ratio of MM Forgings as of 28-Mar-2024 13:44 is 15.49.
The latest P/B ratio of MM Forgings as of 28-Mar-2024 13:44 is 2.63.
The 52-week high of MM Forgings is ₹1,099 and the 52-week low is ₹800.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of MM Forgings is ₹1,494 ( 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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