Is MM Forgings a good quality company?

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

Is MM Forgings 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 Somewhat Undervalued zone .

What is MM Forgings share price return in the past 10 years?

MM Forgings Ltd share price has appreciated 12.8% annually (CAGR) over the past ten years.

Is MM Forgings 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.

MM Forgings Ltd - Stock Valuation and Financial Performance

Name: MM Forgings
Brand: MM Forgings

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

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MM Forgings Share Price

₹467.50 -1.95 -0.42%
as on 21-Nov'24 16:59

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	20.1%	16.9%	12.6%	14.7%	14.4%	8.4%	8%	13.5%	15.2%	15.2%	-
Value Creation Index ⓘ	0.4	0.2	-0.1	0.1	0.0	-0.4	-0.4	0.0	0.1	0.1	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	503	502	478	621	904	727	726	1,105	1,413	1,527	1,521
Sales YoY Gr.	-	-0.1%	-4.8%	29.7%	45.7%	-19.5%	-0.2%	52.2%	27.9%	8.1%	-
Adj EPS ⓘ	10.5	10.4	9	14.2	16.9	9.6	9.7	19	26.1	30	29.9
YoY Gr.	-	-1%	-13.3%	57.6%	18.9%	-43.2%	0.7%	97%	37.5%	14.8%	-
BVPS (₹) ⓘ	49.3	57.9	65.2	76.4	90.4	97	103.6	119.6	143	169.1	183.4
Adj Net Profit ⓘ	50.5	50.1	43.4	68.4	81.3	46.2	46.6	91.8	126	145	144
Cash Flow from Ops. ⓘ	106	123	107	-13.6	32.6	273	10.2	147	116	145	-
Debt/CF from Ops. ⓘ	1.8	1.7	2.1	-28	21.1	2.1	60.1	4.6	6.5	6.4	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	13.1%	11.1%	28.2%	8.1%
Adj EPS ⓘ	12.4%	12.2%	46%	14.8%
BVPSⓘ	14.7%	13.4%	17.7%	18.3%
Share Price	12.8%	19.5%	3.8%	5.6%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	23.3	19.4	14.6	20	20.2	10.2	9.6	17	19.9	19.3	17
Op. Profit Mgn % ⓘ	22	21.5	19.4	20.1	19.2	17.2	16.7	18.3	18.3	18.9	19.6
Net Profit Mgn % ⓘ	10.1	10	9.1	11	9	6.4	6.4	8.3	8.9	9.5	9.5
Debt to Equity ⓘ	0.8	0.8	0.7	1	1.6	1.2	1.2	1.2	1.1	1.1	0.7
Working Cap Days ⓘ	115	105	98	125	142	179	185	154	148	175	108
Cash Conv. Cycle ⓘ	58	46	39	46	64	69	61	66	72	92	23

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 28.15%

Net Profit is growing at healthy rate in last 3 years 45.98%

Return on Equity has declined versus last 3 years average to 17.00%

Debt to equity has increased versus last 3 years average to 1.13

Sales growth is not so good in last 4 quarters at 3.55%

Latest Financials - MM Forgings Ltd.

	Standalone	Consolidated
TTM EPS (₹)	29.9	27.3
TTM Sales (₹ Cr.)	1,521	1,563
BVPS (₹.) ⓘ	183.4	176.4
Reserves (₹ Cr.) ⓘ	837	803
P/BV ⓘ	2.55	2.65
PE ⓘ	15.64	17.14

From the Market
52 Week Low / High (₹)	421.48 / 725.00
All Time Low / High (₹)	1.34 / 725.00
Market Cap (₹ Cr.)	2,256
Equity (₹ Cr.)	48.3
Face Value (₹)	10
Industry PE ⓘ	37.7

Management X-Ray of MM Forgings:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of MM Forgings

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of MM Forgings

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	503	502	478	621	904	727	726	1,105	1,413	1,527
Operating Expenses ⓘ	392	394	386	496	731	602	604	903	1,154	1,239
Manufacturing Costs	98	96	97	122	169	136	129	188	257	289
Material Costs	207	209	203	258	409	334	347	504	675	715
Employee Cost	44	47	47	56	76	76	70	99	112	116
Other Costs ⓘ	44	42	39	60	77	55	58	112	110	119
Operating Profit ⓘ	111	108	93	124	173	125	121	202	258	288
Operating Profit Margin (%)	22.0%	21.5%	19.4%	20.1%	19.2%	17.2%	16.7%	18.3%	18.3%	18.9%
Other Income ⓘ	2	5	11	12	16	19	22	19	16	25
Interest ⓘ	9	8	10	13	26	33	31	27	30	43
Depreciation ⓘ	35	36	39	42	54	53	57	60	69	72
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	1
Profit Before Tax ⓘ	69	69	55	82	109	57	55	133	176	199
Tax ⓘ	18	19	12	14	27	11	8	41	50	54
Profit After Tax	51	50	43	69	81	46	47	92	126	145
PAT Margin (%)	10.1%	10.0%	9.1%	11.0%	9.0%	6.4%	6.4%	8.3%	8.9%	9.5%
Adjusted EPS (₹)	10.5	10.4	9.0	14.2	16.9	9.6	9.7	19.0	26.2	30.1
Dividend Payout Ratio (%)	14%	14%	17%	18%	15%	26%	26%	16%	11%	13%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	238	280	315	369	436	468	500	578	690	816
Share Capital ⓘ	12	12	12	12	24	24	24	24	24	24
Reserves ⓘ	226	268	303	357	412	444	476	553	666	792
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	175	191	183	341	631	491	532	591	654	805
Long Term Debt	83	98	108	168	396	335	297	346	332	387
Short Term Debt	92	92	74	173	234	157	235	245	322	418
Trade Payables	28	30	29	62	48	72	98	115	160	163
Others Liabilities ⓘ	50	37	74	80	102	108	132	155	169	211
Total Liabilities ⓘ	490	538	601	852	1,217	1,140	1,263	1,439	1,673	1,996
Fixed Assets
Gross Block	499	572	668	755	1,032	1,150	1,171	1,264	1,430	1,600
Accumulated Depreciation	273	309	348	390	444	497	554	614	711	783
Net Fixed Assetsⓘ	225	262	320	365	588	653	618	650	719	818
CWIP ⓘ	11	30	14	27	39	9	17	36	61	112
Investmentsⓘ	0	0	0	4	5	5	5	33	41	41
Inventories	79	73	66	125	188	131	169	193	289	322
Trade Receivables	29	15	17	57	79	12	122	166	229	316
Cash Equivalents	89	121	134	164	172	174	187	225	205	209
Others Assetsⓘ	56	36	50	109	146	156	146	136	129	177
Total Assets ⓘ	490	538	601	852	1,217	1,140	1,263	1,439	1,673	1,996

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	106	123	107	-14	33	273	10	147	116	145
PBT ⓘ	69	69	55	82	109	57	55	133	176	199
Adjustment ⓘ	42	39	38	43	65	70	70	74	86	95
Changes in Working Capital ⓘ	12	33	27	-120	-116	155	-109	-33	-103	-118
Tax Paid ⓘ	-17	-18	-13	-18	-25	-9	-5	-27	-42	-32
Cash Flow From Investing Activity ⓘ	-63	-86	-69	-93	-275	-71	-12	-126	-160	-201
Capex	-66	-91	-81	-101	-289	-88	-30	-111	-156	-220
Net Investments	0	0	0	-4	-1	0	0	-28	-17	-1
Others ⓘ	2	5	11	12	15	16	18	13	13	19
Cash Flow From Financing Activityⓘ	21	-5	-25	137	249	-199	15	17	21	63
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	48	16	10	60	228	-62	-37	49	-18	55
Interest Paid ⓘ	-9	-8	-10	-13	-26	-33	-31	-27	-30	-43
Dividend Paid ⓘ	-7	-12	-7	-8	-13	-20	0	-12	-14	-14
Others ⓘ	-11	0	-18	98	61	-84	83	7	83	65
Net Cash Flow ⓘ	64	32	13	30	8	2	13	38	-23	6

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	23.31	19.36	14.62	20.04	20.2	10.22	9.62	17.02	19.94	19.31
ROCE (%)	20.08	16.85	12.62	14.7	14.37	8.38	8.02	13.5	15.2	15.18
Asset Turnover Ratio	1.15	0.98	0.84	0.85	0.87	0.62	0.6	0.82	0.91	0.83
PAT to CFO Conversion(x)	2.08	2.46	2.49	-0.2	0.41	5.93	0.21	1.6	0.92	1
Working Capital Days
Receivable Days	21	16	12	22	27	23	34	48	51	65
Inventory Days	56	55	53	56	63	80	75	60	62	73
Payable Days	38	50	53	64	49	65	89	77	74	83

MM Forgings Ltd Stock News

MM Forgings Ltd FAQs

What is the share price of MM Forgings?

Company share prices are keep on changing according to the market conditions. The closing price of MM Forgings on 21-Nov-2024 16:59 is ₹467.5.

What is the market cap of MM Forgings?

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 21-Nov-2024 16:59 the market cap of MM Forgings stood at ₹2,256.

What is the P/E ratio of MM Forgings?

The latest P/E ratio of MM Forgings as of 21-Nov-2024 16:59 is 15.64.

What is the P/B ratio of MM Forgings?

The latest P/B ratio of MM Forgings as of 21-Nov-2024 16:59 is 2.55.

What is the 52-week high and low of MM Forgings?

The 52-week high of MM Forgings is ₹725.0 and the 52-week low is ₹421.5.

What is the TTM revenue of MM Forgings?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of MM Forgings is ₹1,521 ( Cr.) .

About MM Forgings Ltd

The journey of MM Forgings started as Madras Motors Limited in year 1946 as dealers of â€œRoyal Enfield Motor Cycles, UKâ€ 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 â€œMM Forgings Limitedâ€ 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.