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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 522241 | NSE: MMFL

MM Forgings Ltd (MMFL): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:47 pm

Market Cap 2,260 Cr.
Current Price 468
High / Low730/421
Stock P/E16.0
Book Value 183
Dividend Yield0.85 %
ROCE15.1 %
ROE19.2 %
Face Value 10.0
PEG Ratio0.64

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for MM Forgings Ltd (MMFL)

Competitors of MM Forgings Ltd (MMFL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Happy Forgings Ltd 10,074 Cr. 1,0661,300/81338.9 1820.38 %22.7 %18.7 % 2.00
EL Forge Ltd 66.2 Cr. 32.635.2/9.1526.8 11.60.00 %%% 10.0
CIE Automotive India Ltd 17,432 Cr. 460628/40121.3 1631.09 %18.3 %20.3 % 10.0
Amforge Industries Ltd 16.4 Cr. 11.417.2/6.80 8.830.00 %3.55 %3.17 % 2.00
Tirupati Forge Ltd 528 Cr. 51.055.4/11.657.4 5.320.00 %18.3 %15.0 % 2.00
Industry Average13,568.25 Cr415.49180.16143.690.31%12.37%15.20%5.92

All Competitor Stocks of MM Forgings Ltd (MMFL)

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales239261289315333342361373366384388389369
Expenses196214233260273280295309303312315313297
Operating Profit43485655606266646372737572
OPM %18%18%19%17%18%18%18%17%17%19%19%19%19%
Other Income4545156565777
Interest77766787109111315
Depreciation15151515151717181818191819
Profit before tax26303839394247444151505244
Tax %9%9%17%76%24%25%28%36%27%28%31%26%27%
Net Profit2428319303234283037353832
EPS in Rs4.945.746.421.906.126.607.015.876.217.587.207.886.71

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3614115035024786219047277261,1051,4131,5271,529
Expenses3033323923943864967316026049031,1541,2391,238
Operating Profit587911110893124173125121202258288292
OPM %16%19%22%22%19%20%19%17%17%18%18%19%19%
Other Income0325111216192219162626
Interest7898101326333127304347
Depreciation21363536394254535760697273
Profit before tax3038696955821095755133176199197
Tax %19%24%26%28%21%17%25%19%15%31%28%27%
Net Profit24295150436981464792126145142
EPS in Rs5.076.0810.4910.399.0114.2116.849.579.6519.0026.1730.1229.37
Dividend Payout %15%16%14%14%17%18%15%26%26%16%11%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)20.83%75.86%-1.96%-14.00%60.47%17.39%-43.21%2.17%95.74%36.96%15.08%
Change in YoY Net Profit Growth (%)0.00%55.03%-77.82%-12.04%74.47%-43.07%-60.60%45.38%93.57%-58.79%-21.88%

MM Forgings Ltd (MMFL) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:11%
3 Years:28%
TTM:3%
Compounded Profit Growth
10 Years:18%
5 Years:12%
3 Years:46%
TTM:10%
Stock Price CAGR
10 Years:14%
5 Years:20%
3 Years:3%
1 Year:5%
Return on Equity
10 Years:17%
5 Years:16%
3 Years:19%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121224242424242448
Reserves160184226268303357412444476554666792837
Borrowings1461511902142243816885665326807569251,098
Other Liabilities46314545518693105230181227254327
Total Liabilities3633784735385898361,2171,1401,2631,4391,6731,9962,310
Fixed Assets196200225262320365588653618650719818785
CWIP4711301427399173661112335
Investments00000455533414122
Other Assets1641712372452554405854736237208531,0251,168
Total Assets3633784735385898361,2171,1401,2631,4391,6731,9962,310

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +5735106123107-143327310147116145
Cash from Investing Activity +-30-40-63-86-69-93-275-71-12-126-160-201
Cash from Financing Activity +-28621-5-25137249-19914172163
Net Cash Flow-0164321330821338-236

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-88.00-72.00-79.00-106.00-131.00-257.00-515.00-441.00-411.00-478.00-498.00-637.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days34262111133332661555976
Inventory Days169158139128119177167143177139157165
Days Payable7132485252874378103838783
Cash Conversion Cycle132151111878012315771135112129157
Working Capital Days8283594525607810628388109
ROCE %12%13%20%17%13%15%14%8%8%14%15%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Jul 2024
Promoters56.34%56.34%56.34%56.33%56.33%56.33%56.33%56.33%56.33%56.33%56.33%56.33%
FIIs0.77%0.78%0.82%0.91%1.16%1.65%1.64%1.72%1.93%2.28%2.85%2.65%
DIIs21.22%19.63%17.99%16.32%16.65%17.02%16.59%15.66%14.47%11.83%10.72%10.56%
Public21.68%23.26%24.86%26.44%25.85%25.00%25.44%26.29%27.27%29.56%30.10%30.46%
No. of Shareholders9,41411,39812,41915,39815,53014,77515,84416,57018,42922,52927,47830,760

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Hybrid Equity Fund - Regular Plan1,214,0000.2972.5217,4002024-11-206877.01%
Sundaram Small Cap Fund286,2380.517.117,4002024-11-201545.05%
Navi Flexi Cap Fund50,0001.082.9917,4002024-11-20187.36%
Navi Aggressive Hybrid Fund17,4000.941.0417,4002024-11-200%
Navi ELSS Tax Saver Fund - Regular Plan11,0000.980.6617,4002024-11-20-36.78%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)55.9453.0037.6919.3517.28
Diluted EPS (Rs.)55.9453.0037.6919.3517.28
Cash EPS (Rs.)90.2485.6465.7645.5941.95
Book Value[Excl.RevalReserv]/Share (Rs.)326.87278.93231.79201.80188.48
Book Value[Incl.RevalReserv]/Share (Rs.)326.87278.93231.79201.80188.48
Revenue From Operations / Share (Rs.)647.48605.56472.08324.18318.62
PBDIT / Share (Rs.)129.79118.0192.3261.7362.44
PBIT / Share (Rs.)95.4885.3664.2535.4837.77
PBT / Share (Rs.)78.4973.3053.3821.6121.91
Net Profit / Share (Rs.)55.9453.0037.6919.3517.28
NP After MI And SOA / Share (Rs.)55.9453.0037.6919.3517.28
PBDIT Margin (%)20.0419.4819.5519.0419.59
PBIT Margin (%)14.7414.0913.6110.9411.85
PBT Margin (%)12.1212.1011.306.666.87
Net Profit Margin (%)8.638.757.985.965.42
NP After MI And SOA Margin (%)8.638.757.985.965.42
Return on Networth / Equity (%)17.1219.0116.269.589.16
Return on Capital Employeed (%)18.8119.7916.4610.5011.08
Return On Assets (%)6.867.706.433.683.67
Long Term Debt / Equity (X)0.490.490.620.610.73
Total Debt / Equity (X)1.030.971.071.091.08
Asset Turnover Ratio (%)0.860.950.810.600.61
Current Ratio (X)1.171.191.311.171.14
Quick Ratio (X)0.700.700.870.770.71
Inventory Turnover Ratio (X)2.392.922.812.191.97
Dividend Payout Ratio (NP) (%)14.3011.3215.9125.8433.99
Dividend Payout Ratio (CP) (%)8.867.009.1210.9614.00
Earning Retention Ratio (%)85.7088.6884.0974.1666.01
Cash Earning Retention Ratio (%)91.1493.0090.8889.0486.00
Interest Coverage Ratio (X)7.409.648.044.233.94
Interest Coverage Ratio (Post Tax) (X)4.165.314.232.282.09
Enterprise Value (Cr.)2705.022447.162413.961539.81716.41
EV / Net Operating Revenue (X)1.731.672.121.970.93
EV / EBITDA (X)8.638.5910.8310.334.75
MarketCap / Net Operating Revenue (X)1.351.381.791.530.52
Retention Ratios (%)85.6988.6784.0874.1566.00
Price / BV (X)2.672.993.652.450.88
Price / Net Operating Revenue (X)1.351.381.791.530.52
EarningsYield0.060.060.040.030.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of MM Forgings Ltd (MMFL) as of November 21, 2024 is: 566.95

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, MM Forgings Ltd (MMFL) is Undervalued by 21.14% compared to the current share price 468.00

Intrinsic Value of MM Forgings Ltd (MMFL) as of November 21, 2024 is: 708.30

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, MM Forgings Ltd (MMFL) is Undervalued by 51.35% compared to the current share price 468.00

Last 5 Year EPS CAGR: 24.93%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (402.85 cr) and profit (97.62 cr) over the years.
  1. The stock has a low average ROCE of 13.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 65.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 120.42, which may not be favorable.
  4. The company has higher borrowings (503.92) compared to reserves (436.85), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in MM Forgings Ltd (MMFL):
    1. Net Profit Margin: 8.63%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 18.81% (Industry Average ROCE: 10.31%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.12% (Industry Average ROE: 12.67%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.16
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.7
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 16 (Industry average Stock P/E: 135.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.03
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

M M Forgings Ltd. is a Public Limited Listed company incorporated on 21/02/1946 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L51102TN1946PLC001473 and registration number is 001473. Currently Company is involved in the business activities of Forging, pressing, stamping and roll-forming of metal; powder metallurgy. Company’s Total Operating Revenue is Rs. 1104.64 Cr. and Equity Capital is Rs. 24.14 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Forgings�SVK Towers�, Chennai (Madras) Tamil Nadu 600032mmforge@mmforgings.com
http://www.mmforgings.com
Management
NamePosition Held
Mr. Vidyashankar KrishnanChairman & Managing Director
Mr. K VenkatramananJoint Managing Director
Mrs. Sumita VidyashankarNon Executive Director
Mr. Ramnath NagarajanDirector - Commercial
Mr. Krishnakumar RamanDirector - Operations
Mrs. Kavitha VijayIndependent Director
Mr. Shankar AthreyaIndependent Director
Mr. S KrishnakumarIndependent Director
Mr. R SubramanianIndependent Director
Mr. Hari SankaranIndependent Director

FAQ

What is the latest intrinsic value of MM Forgings Ltd (MMFL)?

The latest intrinsic value of MM Forgings Ltd (MMFL) as on 21 November 2024 is ₹566.95, which is 21.14% higher than the current market price of ₹468.00.

What is the Market Cap of MM Forgings Ltd (MMFL)?

The Market Cap of MM Forgings Ltd (MMFL) is 2,260 Cr..

What is the current Stock Price of MM Forgings Ltd (MMFL) as on 21 November 2024?

The current stock price of MM Forgings Ltd (MMFL) as on 21 November 2024 is ₹468.

What is the High / Low of MM Forgings Ltd (MMFL) stocks in FY 2024?

In FY 2024, the High / Low of MM Forgings Ltd (MMFL) stocks is 730/421.

What is the Stock P/E of MM Forgings Ltd (MMFL)?

The Stock P/E of MM Forgings Ltd (MMFL) is 16.0.

What is the Book Value of MM Forgings Ltd (MMFL)?

The Book Value of MM Forgings Ltd (MMFL) is 183.

What is the Dividend Yield of MM Forgings Ltd (MMFL)?

The Dividend Yield of MM Forgings Ltd (MMFL) is 0.85 %.

What is the ROCE of MM Forgings Ltd (MMFL)?

The ROCE of MM Forgings Ltd (MMFL) is 15.1 %.

What is the ROE of MM Forgings Ltd (MMFL)?

The ROE of MM Forgings Ltd (MMFL) is 19.2 %.

What is the Face Value of MM Forgings Ltd (MMFL)?

The Face Value of MM Forgings Ltd (MMFL) is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in MM Forgings Ltd (MMFL). Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE