Auto Components
Valuation | |
|---|---|
| Market Cap | 2.17 kCr |
| Price/Earnings (Trailing) | 22.67 |
| Price/Sales (Trailing) | 1.43 |
| EV/EBITDA | 10.59 |
| Price/Free Cashflow | 7.87 |
| MarketCap/EBT | 16.49 |
| Enterprise Value | 3.15 kCr |
Fundamentals | |
|---|---|
Growth & Returns | |
|---|---|
| Price Change 1W | 8% |
| Price Change 1M | 3.8% |
| Price Change 6M | 45.2% |
| Price Change 1Y | 8.5% |
| 3Y Cumulative Return | -18.7% |
| 5Y Cumulative Return | -2.4% |
| 7Y Cumulative Return | -1% |
| 10Y Cumulative Return | 8.3% |
| Revenue (TTM) |
| 1.51 kCr |
| Rev. Growth (Yr) | -4.1% |
| Earnings (TTM) | 95.6 Cr |
| Earnings Growth (Yr) | -48.1% |
Profitability | |
|---|---|
| Operating Margin | 9% |
| EBT Margin | 9% |
| Return on Equity | 10.31% |
| Return on Assets | 3.85% |
| Free Cashflow Yield | 12.71% |
Cash Flow & Liquidity |
|---|
| Cash Flow from Investing (TTM) | -358.21 Cr |
| Cash Flow from Operations (TTM) | 183.45 Cr |
| Cash Flow from Financing (TTM) | 182.89 Cr |
| Cash & Equivalents | 232.26 Cr |
| Free Cash Flow (TTM) | 183.45 Cr |
| Free Cash Flow/Share (TTM) | 38 |
Balance Sheet | |
|---|---|
| Total Assets | 2.48 kCr |
| Total Liabilities | 1.56 kCr |
| Shareholder Equity | 927.41 Cr |
| Current Assets | 1.06 kCr |
| Current Liabilities | 802.68 Cr |
| Net PPE | 1.08 kCr |
| Inventory | 371.43 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.49 |
| Debt/Equity | 1.31 |
| Interest Coverage | 0.91 |
| Interest/Cashflow Ops | 3.89 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 4 |
| Dividend Yield | 0.89% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Momentum: Stock price has a strong positive momentum. Stock is up 3.8% in last 30 days.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Balance Sheet: Reasonably good balance sheet.
Past Returns: Underperforming stock! In past three years, the stock has provided -18.7% return compared to 12.8% by NIFTY 50.
Growth: Poor revenue growth. Revenue grew at a disappointing -5.5% on a trailing 12-month basis.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Momentum: Stock price has a strong positive momentum. Stock is up 3.8% in last 30 days.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Balance Sheet: Reasonably good balance sheet.
Past Returns: Underperforming stock! In past three years, the stock has provided -18.7% return compared to 12.8% by NIFTY 50.
Growth: Poor revenue growth. Revenue grew at a disappointing -5.5% on a trailing 12-month basis.
Investor Care | |
|---|---|
| Dividend Yield | 0.89% |
| Dividend/Share (TTM) | 4 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 19.8 |
Financial Health | |
|---|---|
| Current Ratio | 1.32 |
| Debt/Equity | 1.31 |
Technical Indicators | |
|---|---|
| RSI (14d) | 54.89 |
| RSI (5d) | 75.38 |
| RSI (21d) | 57.54 |
| MACD Signal | Buy |
| Stochastic Oscillator Signal | Hold |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Sell |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal |
Summary of M.M.Forgings's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Management provided an outlook expecting revenue for FY '26 to be around the previous year's numbers, potentially in the range of INR 750 crores to INR 800 crores for H2. They anticipate this will bring total revenues close to last year's figures, subject to market conditions, particularly a rebound in the Class VIII truck market in the U.S. Total turnover for Q2 was INR 758 crores, down from INR 793 crores in the prior half, with EBITDA standing at INR 142 crores compared to INR 162 crores year-on-year. Profit before tax and profit after tax also showed declines, at INR 53 crores and INR 36 crores, respectively.
Management highlighted major forward-looking points:
Order Book and Future Revenues: They have an order book valued at INR 300 crores, from which they expect to realize about INR 200 crores in FY '27.
Expansion Capacity: With the commissioning of a 16,500 ton press, the company anticipates adding approximately INR 300 crores to annual revenue once operational by FY '27.
Market Recovery Expectations: Management noted that U.S. market inventory levels are being depleted, leading them to expect renewed orders coming in November, contributing positively to sales.
Profitability Improvement: EBITDA margins, currently at 19%, are expected to improve as the market recovers, particularly as the current quarter is thought to be the lowest in terms of performance.
Capex Plans: Planned investments over the next year are projected to be around INR 100 crores to INR 120 crores, focusing on enhancing production capacity and product offerings.
Cost Management: Ongoing efforts to manage costs include reducing working capital by compressing inventories by INR 50 crores to INR 75 crores.
Overall, management remains cautiously optimistic about future growth, contingent on market recovery.
Understand M.M.Forgings ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| SYNMAX CONSULTANTS AND TRADING PVT LTD | 24.01% |
| KRISHNAN VIDYA SHANKAR | 11.27% |
| K VENKATRAMANAN | 10.71% |
| SIVASUNDAR PRIVATE LTD | 3.88% |
| HDFC MUTUAL FUND | 3.74% |
| TATA MUTUAL FUND | 3.26% |
| S LAKSHMAN | 3.08% |
Detailed comparison of M.M.Forgings against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| SSWL | Steel Strips & Wheels | 3.41 kCr | 4.95 kCr | +1.60% | +17.90% | 17.12 | 0.69 | - | - |
| AUTOAXLES | Automotive Axles | 3.19 kCr | 2.07 kCr |
Comprehensive comparison against sector averages
MMFL metrics compared to Auto
| Category | MMFL | Auto |
|---|---|---|
| PE | 22.27 | 40.65 |
| PS | 1.41 | 2.27 |
| Growth | -5.5 % | 8 % |
M M Forgings Limited, together with its subsidiaries, manufactures and sells steel forgings in India. The company offers sprocket, flange housing, connecting rod, rail forging, hub, knuckle, front axle beam, universal joint cross, steering and pivot arm, planetary wheel carrier, upper arm shaft, shifter fork, and rear axle spindle. It also offers yoke shaft, double yoke, crankshaft, link, yoke, fit yoke, lever, and high pressure valves body and bonnet. The company's products are used for passenger cars, commercial vehicles, off highway vehicles, value/oilfield, agriculture, and engineering components. The company was formerly known as The Madras Motors Ltd and changed its name to M M Forgings Limited in 1993. M M Forgings Limited was founded in 1945 and is based in Chennai, India.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.
| Buy |
| SMA 20 Signal | Buy |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
MMFL vs Auto (2021 - 2026)
Question 1: "What is the annual revenue that can be added once the new 120,000 ton forging press is installed?"
Answer: We anticipate generating around INR 300 crores in annual revenue once the 16,500 ton press, the world's largest hot forging mechanical press, is fully operational by March or April 2027.
Question 2: "When do you expect a breakout performance for MM Forgings?"
Answer: I believe FY '27 could be a breakout year as we see improvement in our internal capabilities and assets, which will start contributing positively to our performance.
Question 3: "Will MM Forgings diversify from commercial vehicles (CV) due to the new 16,500 ton press?"
Answer: While diversifying into off-highway and industrial segments is a long-term plan, for the next year, we will continue our reliance on CVs. Full diversification will require further investments.
Question 4: "What is the capex plan for the second half and next year?"
Answer: We're planning to invest INR 70 crores in the second half of this fiscal year and expect about INR 100-120 crores in the following year as our capacity expands.
Question 5: "Is there a risk of losing orders due to competition?"
Answer: No significant order losses have occurred from our side. Although we've faced a drop in U.S. exports, our competitive position remains strong.
Question 6: "What does the annual order of INR 20-30 crores for Abhinava Rizel entail?"
Answer: This figure represents an annual order, not quarterly. We're optimistic about our growing presence in Europe, offsetting some losses in the U.S. market.
Question 7: "How do you foresee the U.S. market's tariff situation affecting your business?"
Answer: The tariffs are currently absorbed by customers. However, if tariffs remain high, we anticipate shifts in sourcing strategies, although our competitive manufacturing capability is intact.
Question 8: "What is your outlook on the domestic CV market?"
Answer: We foresee steady state growth with a slight increase in tonnage but a decline in unit sales as multi-axle vehicles become less favored, marking a shift in customer preferences.
Feel free to ask additional questions or for further details!
| LAKSHMI RAMACHANDRAN | 2.35% |
| SRINIVASAN V | 1.74% |
| SANDHYA G PARIKH | 1.38% |
| CHINMAY G PARIKH | 1.36% |
| R SUBRAMONIAN | 0.64% |
| AJAY SHANKAR RAMACHANDRAN | 0.22% |
| SUMITA VIDYASHANKAR | 0.14% |
| VIJAY SUNDAR RAMACHANDRAN | 0.03% |
| SANDHYA VIDYASHANKAR | 0% |
| FOREIGN INSTITUTIONAL | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
| +5.60% |
| +25.20% |
| 20.28 |
| 1.54 |
| - |
| - |
| -11.1% |
| 25 |
| 28 |
| 40 |
| 39 |
| 45 |
| 42 |
| Exceptional items before tax | - | 0 | 0 | 0.02 | 0.04 | 0 | 0 |
| Total profit before tax | -11.1% | 25 | 28 | 40 | 39 | 45 | 42 |
| Current tax | 0% | 7.5 | 7.5 | 4.17 | 10 | 11 | 10 |
| Deferred tax | - | 1 | 1 | 2.69 | 2 | 2 | 2 |
| Total tax | 0% | 8.5 | 8.5 | 6.86 | 12 | 13 | 12 |
| Total profit (loss) for period | -11.1% | 17 | 19 | 33 | 27 | 32 | 30 |
| Total Comprehensive Income | -11.1% | 17 | 19 | 33 | 27 | 32 | 30 |
| Earnings Per Share, Basic | -18.2% | 3.43 | 3.97 | 6.9 | 5.5 | 6.61 | 6.235 |
| Earnings Per Share, Diluted | -18.2% | 3.43 | 3.97 | 6.9 | 5.5 | 6.61 | 6.235 |
| 42.9% |
| 61 |
| 43 |
| 29 |
| 27 |
| 31 |
| 33 |
| Depreciation and Amortization | 14.1% | 82 | 72 | 68 | 60 | 57 | 53 |
| Other expenses | 0% | 388 | 388 | 353 | 286 | 181 | 185 |
| Total Expenses | -2% | 1,327 | 1,354 | 1,251 | 990 | 692 | 688 |
| Profit Before exceptional items and Tax | -9.6% | 180 | 199 | 175 | 133 | 55 | 57 |
| Exceptional items before tax | -224.1% | 0.06 | 0.71 | 0.01 | 0 | 0 | 0 |
| Total profit before tax | -9.6% | 180 | 199 | 175 | 133 | 55 | 57 |
| Current tax | -27.7% | 35 | 48 | 46 | 25 | 7.25 | 0.02 |
| Deferred tax | 66.7% | 8.5 | 5.5 | 3.01 | -4.29 | 1.07 | 11 |
| Total tax | -18.9% | 44 | 54 | 49 | 21 | 8.32 | 11 |
| Total profit (loss) for period | -6.2% | 136 | 145 | 126 | 112 | 47 | 46 |
| Total Comprehensive Income | -6.2% | 136 | 145 | 126 | 112 | 47 | 46 |
| Earnings Per Share, Basic | -6.5% | 28.23 | 30.13 | 26.01 | 23.15 | 9.655 | 9.575 |
| Earnings Per Share, Diluted | -6.5% | 28.23 | 30.13 | 26.1 | 23.15 | 9.655 | 9.575 |
| 0% |
| 22 |
| 22 |
| - |
| 41 |
| 50 |
| 50 |
| Loans, non-current | 22.4% | 198 | 162 | - | 142 | 114 | 105 |
| Total non-current financial assets | 19.7% | 220 | 184 | - | 184 | 164 | 154 |
| Total non-current assets | 8.5% | 1,526 | 1,406 | - | 1,127 | 1,003 | 937 |
| Total assets | 4.9% | 2,521 | 2,404 | 2,310 | 1,996 | 1,745 | 1,670 |
| Borrowings, non-current | 13.5% | 684 | 603 | - | 387 | 368 | 329 |
| Total non-current financial liabilities | 13.5% | 684 | 603 | - | 387 | 368 | 329 |
| Total non-current liabilities | -26.8% | 756 | 1,032 | - | 439 | 420 | 371 |
| Borrowings, current | 704.5% | 532 | 67 | - | 418 | 341 | 322 |
| Total current financial liabilities | 150% | 676 | 271 | - | 581 | 460 | 480 |
| Provisions, current | -6.5% | 30 | 32 | - | 38 | 22 | 28 |
| Total current liabilities | 81% | 792 | 438 | - | 740 | 570 | 610 |
| Total liabilities | 5.2% | 1,547 | 1,470 | - | 1,180 | 990 | 981 |
| Equity share capital | 0% | 48 | 48 | 48 | 24 | 24 | 24 |
| Total equity | 4.2% | 973 | 934 | 885 | 816 | 755 | 689 |
| Total equity and liabilities | 4.9% | 2,521 | 2,404 | 2,310 | 1,996 | 1,745 | 1,670 |
| 31.9% |
| 191 |
| 145 |
| 121 |
| 147 |
| - |
| - |
| Proceeds from sales of PPE | -171.3% | 0.08 | 2.29 | 0.01 | 0 | - | - |
| Dividends received | 14.3% | 17 | 15 | 7.94 | 8.32 | - | - |
| Interest received | 133.8% | 8.48 | 4.2 | 4.78 | 4.99 | - | - |
| Other inflows (outflows) of cash | -59.1% | -355.32 | -222.92 | -169.14 | -139.32 | - | - |
| Net Cashflows From Investing Activities | -63.5% | -329.8 | -201.28 | -156.41 | -126.01 | - | - |
| Proceeds from borrowings | 98.3% | 346 | 175 | 75 | 145 | - | - |
| Repayments of borrowings | 7.6% | 129 | 120 | 92 | 96 | - | - |
| Dividends paid | 38.5% | 19 | 14 | 29 | 15 | - | - |
| Interest paid | 42.9% | 61 | 43 | 14 | 27 | - | - |
| Other inflows (outflows) of cash | -84.4% | 11 | 65 | 77 | 9.71 | - | - |
| Net Cashflows from Financing Activities | 135.5% | 147 | 63 | 16 | 17 | - | - |
| Net change in cash and cash eq. | 32% | 8.05 | 6.34 | -19.27 | 38 | - | - |