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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of MM Forgings Ltd (MMFL)

About the Company - MM Forgings Ltd (MMFL)

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�, A25, 8th Floor, Chennai (Madras) Tamil Nadu 600032mmforge@mmforgings.com
http://www.mmforgings.com
Management
NamePosition Held
Mr. N SrinivasanChairman
Mr. Vidyashankar KrishnanVice Chairman & Mng.Director
Mr. K VenkatramananJoint Managing Director
Mrs. Sumita VidyashankarDirector
Mr. V VaidyanathanDirector
Mr. A GopalakrishnanDirector
Mrs. Kavitha VijayDirector

Basic Stock Data of MM Forgings Ltd (MMFL)

Last Updated: June 17, 2024, 8:22 pm

Market Cap 2,911 Cr.
Current Price 1,206
High / Low1,302/825
Stock P/E20.1
Book Value 338
Dividend Yield0.66 %
ROCE15.8 %
ROE19.2 %
Face Value 10.0
PEG Ratio0.84

Competitors of MM Forgings Ltd (MMFL)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
LGB Forge Ltd 236 Cr. 9.9014.8/8.37 0.850.00 %4.59 %22.4 % 1.00
Kalyani Forge Ltd 238 Cr. 657728/23452.3 2250.46 %8.04 %4.85 % 10.0
Ramkrishna Forgings Ltd 15,815 Cr. 872884/42546.3 1480.23 %18.7 %17.0 % 2.00
Bharat Forge Ltd 79,956 Cr. 1,7171,739/80087.1 1540.52 %13.3 %13.2 % 2.00
Tirupati Forge Ltd 249 Cr. 25.428.2/6.7537.5 5.090.00 %18.8 %15.4 % 2.00
Industry Average14,763.85 Cr483.1731.24159.970.26%10.51%11.91%4.88

MM Forgings Ltd (MMFL) Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales147216285239261289315333342361373366384
Expenses122183229196214233260273280295307303312
Operating Profit25335643485655606266656272
OPM %17%15%20%18%18%19%17%18%18%18%18%17%19%
Other Income5634545156565
Interest88877766787109
Depreciation13141715151515151717171818
Profit before tax8183426303839394247464151
Tax %21%14%12%9%9%17%76%24%25%28%35%27%28%
Net Profit615302428319303234303037
EPS in Rs2.666.2212.499.8811.4812.853.8012.2413.2114.0312.5512.4615.17

MM Forgings Ltd (MMFL) Quarterly Chart

MM Forgings Ltd (MMFL) Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3503614115035024786219047277261,1051,4091,510
Expenses2903033323923943864967316026049031,1541,236
Operating Profit60587911110893124173125121202256274
OPM %17%16%19%22%22%19%20%19%17%17%18%18%18%
Other Income703251112161922191624
Interest678981013263331272936
Depreciation23213635363942545357606870
Profit before tax393038696955821095755133175192
Tax %31%19%24%26%28%21%17%25%19%15%31%28%
Net Profit2724295150436981464792126135
EPS in Rs11.1010.1512.1720.9820.7818.0228.4333.7019.1519.3138.0152.0255.93
Dividend Payout %14%15%16%14%14%17%18%15%26%26%16%12%

MM Forgings Ltd (MMFL) Profit & Loss Yearly Chart

MM Forgings Ltd (MMFL) Growth

Compounded Sales Growth
10 Years:14%
5 Years:11%
3 Years:28%
TTM:8%
Compounded Profit Growth
10 Years:18%
5 Years:12%
3 Years:46%
TTM:15%
Stock Price CAGR
10 Years:30%
5 Years:19%
3 Years:27%
1 Year:38%
Return on Equity
10 Years:17%
5 Years:16%
3 Years:19%
Last Year:19%

Last Updated: June 17, 2024, 7:19 pm

MM Forgings Ltd (MMFL) Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121212121212242424242424
Reserves140160184226268303357412444476554665731
Borrowings154146151190214224381688566532680752709
Other Liabilities3446314545518693105230181229280
Total Liabilities3403633784735385898361,2171,1401,2631,4391,6701,745
Fixed Assets188196200225262320365588653618650712686
CWIP34711301427399173659142
Investments0000004555335050
Other Assets149164171237245255440585473623720850868
Total Assets3403633784735385898361,2171,1401,2631,4391,6701,745

MM Forgings Ltd (MMFL) Reserves and Borrowings Chart

MM Forgings Ltd (MMFL) Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 485735106123107-143327310147114
Cash from Investing Activity -59-30-40-63-86-69-93-275-71-12-126-156
Cash from Financing Activity 11-28621-5-25137249-199141723
Net Cash Flow0-0164321330821338-19

MM Forgings Ltd (MMFL) Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days24342621111333326615559
Inventory Days212169158139128119177167143177139156
Days Payable4471324852528743781038386
Cash Conversion Cycle192132151111878012315771135112129
Working Capital Days968283594525607810628388
ROCE %13%12%13%20%17%13%15%14%8%8%14%15%

MM Forgings Ltd (MMFL) Financial Efficiency Indicators Chart

MM Forgings Ltd (MMFL) Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters56.34%56.34%56.34%56.34%56.34%56.33%56.33%56.33%56.33%56.33%56.33%56.33%
FIIs0.13%0.53%0.77%0.78%0.82%0.91%1.16%1.65%1.64%1.72%1.93%2.28%
DIIs21.76%21.12%21.22%19.63%17.99%16.32%16.65%17.02%16.59%15.66%14.47%11.83%
Public21.77%22.01%21.68%23.26%24.86%26.44%25.85%25.00%25.44%26.29%27.27%29.56%
No. of Shareholders9,1918,9249,41411,39812,41915,39815,53014,77515,84416,57018,42922,529

MM Forgings Ltd (MMFL) Shareholding Pattern Chart

No. of MM Forgings Ltd (MMFL) Shareholders

MM Forgings Ltd (MMFL) Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Small Cap Fund788,1431.0969.12290,6992024-06-16171.12%
HSBC Small Cap Fund - Regular Plan762,4000.5266.86290,6992024-06-16162.26%
HDFC Hybrid Equity Fund - Regular Plan607,0000.2553.23290,6992024-06-16108.81%
Franklin India Smaller Companies Fund492,2270.443.17290,6992024-06-1669.33%
HDFC Multi Cap Fund290,6990.2525.49290,6992024-06-160%
PGIM India Small Cap Fund269,4631.6223.63290,6992024-06-16-7.31%
Franklin Build India Fund156,6240.813.74290,6992024-06-16-46.12%
Sundaram Small Cap Fund143,1190.4412.55290,6992024-06-16-50.77%
LIC MF Multi Cap Fund72,6070.856.37290,6992024-06-16-75.02%
HDFC Transportation and Logistics Fund35,0000.53.07290,6992024-06-16-87.96%

MM Forgings Ltd (MMFL) ROCE Trend

MM Forgings Ltd (MMFL) EPS Trend

MM Forgings Ltd (MMFL) Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)55.8453.0037.6919.3517.28
Diluted EPS (Rs.)55.8453.0037.6919.3517.28
Cash EPS (Rs.)90.1485.6465.7645.5941.95
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.)78.3973.3053.3821.6121.91
Net Profit / Share (Rs.)55.8453.0037.6919.3517.28
NP After MI And SOA / Share (Rs.)55.8453.0037.6919.3517.28
PBDIT Margin (%)20.0419.4819.5519.0419.59
PBIT Margin (%)14.7414.0913.6110.9411.85
PBT Margin (%)12.1012.1011.306.666.87
Net Profit Margin (%)8.628.757.985.965.42
NP After MI And SOA Margin (%)8.628.757.985.965.42
Return on Networth / Equity (%)17.0919.0116.269.589.16
Return on Capital Employeed (%)18.9119.7916.4610.5011.08
Return On Assets (%)6.877.706.433.683.67
Long Term Debt / Equity (X)0.480.490.620.610.73
Total Debt / Equity (X)1.020.971.071.091.08
Asset Turnover Ratio (%)0.860.910.810.600.61
Current Ratio (X)1.171.191.311.171.14
Quick Ratio (X)0.700.700.870.770.71
Inventory Turnover Ratio (X)2.392.992.812.191.97
Dividend Payout Ratio (NP) (%)0.0011.3215.9125.8433.99
Dividend Payout Ratio (CP) (%)0.007.009.1210.9614.00
Earning Retention Ratio (%)0.0088.6884.0974.1666.01
Cash Earning Retention Ratio (%)0.0093.0090.8889.0486.00
Interest Coverage Ratio (X)7.369.648.044.233.94
Interest Coverage Ratio (Post Tax) (X)4.145.314.232.282.09
Enterprise Value (Cr.)2698.102447.162413.961539.81716.41
EV / Net Operating Revenue (X)1.731.672.121.970.93
EV / EBITDA (X)8.618.5910.8310.334.75
MarketCap / Net Operating Revenue (X)1.351.381.791.530.52
Retention Ratios (%)0.0088.6784.0874.1566.00
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

MM Forgings Ltd (MMFL) Profitability Ratios (%)

MM Forgings Ltd (MMFL) Liquidity Ratios

MM Forgings Ltd (MMFL) Liquidity Ratios (%)

MM Forgings Ltd (MMFL) Interest Coverage Ratios (%)

MM Forgings Ltd (MMFL) Valuation Ratios

Fair Value

Fair Value: 1,313.02

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.

Undervalued: 8.87% compared to the current price 1206

Intrinsic Value: 1,626.92

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 34.90% compared to the current price ₹1206

Last 5 Year EPS CAGR: 23.91%

*Investments are subject to market risks

Strength and Weakness of MM Forgings Ltd (MMFL) Stock

StrengthWeakness
  1. The company has shown consistent growth in sales (429.69 cr) and profit (84.85 cr) over the years.
  1. The stock has a low average ROCE of 13.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 64.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 123.33, which may not be favorable.
  4. The company has higher borrowings (414.38) compared to reserves (378.46), which may suggest financial risk.

FAQ

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

The latest fair value of MM Forgings Ltd (MMFL) is ₹1313.02.

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

The Market Cap of MM Forgings Ltd (MMFL) is 2,911 Cr..

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

The current stock price of MM Forgings Ltd (MMFL) as on 21 June 2024 is ₹1,206.

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 1,302/825.

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

The Stock P/E of MM Forgings Ltd (MMFL) is 20.1.

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

The Book Value of MM Forgings Ltd (MMFL) is 338.

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

The Dividend Yield of MM Forgings Ltd (MMFL) is 0.66 %.

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

The ROCE of MM Forgings Ltd (MMFL) is 15.8 %.

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