MM Forgings Limited (MMFL) AI Stock Analysis

• Market Cap: ₹19.37B
• Dividend Yield: 1.07%
• Average Volume (3M): 24.04K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.17
• Revenue Growth: -4.47%
• EPS Growth: -17.62%
• Country: IN
• Employees: 2,054
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 3.70
• Shares Outstanding: 48,281,600
• 10 Day Avg. Volume: 2,841
• 30 Day Avg. Volume: 24,036
• PEG Ratio: -1.43
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -6.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹480.00 ▲(16.90% Upside)

The score is driven primarily by solid financial performance (strong growth and stable operating profitability), tempered by leverage and weak free cash flow due to heavy capex. Technically, the trend is strong but overbought conditions raise near-term risk. Valuation is broadly reasonable but not especially cheap and the dividend yield is modest.

Positive Factors

Business Model Strength

The company's B2B model with long-term contracts in automotive and aerospace ensures stable revenue streams and market resilience.

Operational Management

Effective operational management has driven revenue growth and profitability, indicating strong internal processes and strategic execution.

Stable Gross Profit Margin

A stable gross profit margin reflects efficient cost control, supporting long-term profitability and competitive pricing strategies.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow from high capital expenditures poses a risk to liquidity and may constrain future investment capacity if not managed well.

Decline in Net Profit Margin

A declining net profit margin indicates rising costs, which could pressure profitability if not addressed through cost management or pricing strategies.

MM Forgings Limited Business Overview & Revenue Model

Company Description

M M Forgings Limited, together with its subsidiaries, designs, manufactures, and sells steel forgings for passenger cars, commercial vehicles, off highway, agricultural, and high pressure valves in India. It offers closed die forgings, such as axle beams, steering knuckles, crankshaft, axle spindles, gear blanks, sockets, front hubs, ball studs, cross, and differential spiders. 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.

How the Company Makes Money

MM Forgings Limited generates revenue primarily through the sale of its forged products to various industries, including automotive and aerospace. The company operates on a business-to-business (B2B) model, where it provides customized forging solutions to meet the specific needs of its clients. Key revenue streams include direct sales of forged components, long-term contracts with major automotive manufacturers, and partnerships with aerospace companies for specialized products. Additionally, MMFL may benefit from economies of scale in production and potential export opportunities, which contribute to its overall profitability.

MM Forgings Limited Financial Statement Overview

Summary

MM Forgings Limited shows strong revenue growth and profitability, supported by effective operational management. However, high leverage and significant capital expenditures present risks that need to be addressed to ensure financial stability and sustainable growth.

Income Statement

The company has demonstrated strong revenue growth over the past several years, with a notable increase from 2021 to 2024. The gross profit margin has been stable, indicating efficient cost management. However, the net profit margin saw a slight decline in the latest year due to increased expenses, which is a concern. Overall, the company shows robust performance in terms of revenue growth and profitability, although cost management should be monitored closely.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio, which suggests a higher reliance on debt financing. However, the company has maintained a stable return on equity, reflecting effective use of shareholder funds. The equity ratio has improved over the years, indicating strengthening financial stability. The company should focus on reducing debt to enhance financial health further.

Cash Flow

Operating cash flow has been positive, but there is significant negative free cash flow due to substantial capital expenditures. This indicates heavy investment in growth, but also poses a risk if not managed properly. The operating cash flow to net income ratio suggests that operating cash generation is aligned with profitability, yet the company should aim to improve free cash flow to sustain long-term growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.96B	15.25B	15.63B	14.62B	11.40B	7.52B
Gross Profit	5.71B	4.70B	3.32B	3.07B	4.73B	2.87B
EBITDA	3.11B	3.19B	3.15B	2.85B	2.24B	1.29B
Net Income	1.11B	1.22B	1.35B	1.28B	909.95M	460.59M
Balance Sheet
Total Assets	0.00	23.70B	19.68B	16.64B	14.14B	12.67B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.18B	2.10B	2.18B	2.26B	1.88B
Total Debt	0.00	10.51B	9.31B	7.56B	6.85B	6.15B
Total Liabilities	-8.92B	14.77B	11.79B	9.90B	8.55B	7.80B
Stockholders Equity	8.92B	8.92B	7.89B	6.73B	5.60B	4.87B
Cash Flow
Free Cash Flow	0.00	-2.61B	-1.23B	-321.50M	378.84M	-121.28M
Operating Cash Flow	0.00	1.82B	1.31B	1.67B	1.51B	197.51M
Investing Cash Flow	0.00	-3.84B	-2.32B	-1.85B	-1.26B	-114.09M
Financing Cash Flow	0.00	2.51B	944.99M	164.89M	141.17M	32.86M

MM Forgings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 410.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MMFL, the sentiment is Positive. The current price of 410.6 is above the 20-day moving average (MA) of 377.35, above the 50-day MA of 344.39, and above the 200-day MA of 340.30, indicating a bullish trend. The MACD of 16.99 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MMFL.

MM Forgings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹285.96B	46.66	―	0.65%	7.34%	2.27%
GNA	73 Outperform	₹15.27B	14.55	―	0.95%	-4.65%	9.95%
MMFL	72 Outperform	₹19.37B	17.47	―	1.07%	-4.47%	-17.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HPL	60 Neutral	₹24.32B	25.35	―	0.24%	6.08%	49.44%
HIRECT	58 Neutral	₹23.91B	50.29	―	0.13%	35.05%	99.65%
RKFORGE	54 Neutral	₹90.71B	30.02	―	0.38%	-4.73%	-19.52%