MM Forgings Limited (MMFL) AI Stock Analysis

• Market Cap: ₹14.68B
• Dividend Yield: 1.34%
• Average Volume (3M): 4.23K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.09
• Revenue Growth: -4.47%
• EPS Growth: -17.62%
• Country: IN
• Employees: 2,054
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 4.60
• Shares Outstanding: 48,281,600
• 10 Day Avg. Volume: 5,904
• 30 Day Avg. Volume: 4,230
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹397.00
• Price Target Upside: 30.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹397.00 ▲(30.53% Upside)

The overall score reflects strong financial performance with notable revenue growth and profitability, tempered by high leverage and capital expenditures. Technical analysis indicates a neutral to slightly bearish outlook, and the valuation suggests moderate pricing with limited income potential.

MM Forgings Limited Business Overview & Revenue Model

Company Description

MM Forgings Limited (MMFL) is an Indian company specializing in the manufacturing of forgings for a diverse range of industries, including automotive, industrial machinery, and aerospace. The company is known for its expertise in producing high-quality, precision-engineered metal components that are essential for various mechanical applications. MMFL operates in both domestic and international markets, catering to OEMs and other major industrial clients with a focus on innovation and quality.

How the Company Makes Money

MM Forgings Limited generates revenue through the production and sale of forged metal components. The company's key revenue streams include the supply of these components to the automotive industry, which constitutes a significant portion of its earnings, as well as sales to other sectors such as industrial machinery and aerospace. MMFL benefits from long-term partnerships with major OEMs, which provide consistent demand for its products. Additionally, the company exports its products to international markets, further contributing to its revenue. Strategic investments in technology and capacity expansion enable MMFL to maintain competitive pricing and meet the growing demands of its clients.

MM Forgings Limited Financial Statement Overview

Summary

MM Forgings Limited exhibits strong revenue growth and profitability, with 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	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2022
Income Statement
Total Revenue	15.25B	15.63B	14.48B	7.83B	11.40B
Gross Profit	4.70B	3.32B	7.64B	2.87B	4.73B
EBITDA	3.19B	3.15B	2.85B	1.29B	2.24B
Net Income	1.22B	1.35B	1.28B	460.59M	909.95M
Balance Sheet
Total Assets	23.70B	19.68B	16.64B	12.67B	14.14B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.10B	2.18B	1.87B	2.26B
Total Debt	10.51B	9.31B	6.54B	6.15B	5.96B
Total Liabilities	14.77B	11.79B	9.90B	7.80B	8.55B
Stockholders Equity	8.92B	7.89B	6.73B	4.87B	5.60B
Cash Flow
Free Cash Flow	-2.61B	-1.23B	-321.50M	-121.28M	378.84M
Operating Cash Flow	1.42B	1.31B	1.67B	197.51M	1.51B
Investing Cash Flow	-3.84B	-2.32B	-1.85B	-114.09M	-1.26B
Financing Cash Flow	2.50B	944.99M	105.10M	36.86M	132.75M

MM Forgings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 304.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MMFL, the sentiment is Negative. The current price of 304.15 is below the 20-day moving average (MA) of 349.66, below the 50-day MA of 360.52, and below the 200-day MA of 397.29, indicating a bearish trend. The MACD of -11.48 indicates Positive momentum. The RSI at 26.40 is Positive, neither overbought nor oversold. The STOCH value of 8.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	70 Outperform	₹273.50B	46.31		0.71%	5.20%	1.76%
MMFL	67 Neutral	₹14.68B	13.24		1.34%	-4.47%	-17.62%
GNA	67 Neutral	₹12.99B	12.70		0.99%	-3.10%	8.21%
Sector *	62 Neutral	C$7.21B	-5.53	-4.20%	2.31%	13.66%	-29.71%
HIRECT	60 Neutral	₹32.77B	76.28		0.11%	32.24%	144.50%
HPL	54 Neutral	₹37.56B	40.06		0.17%	10.26%	77.41%
RKFORGE	51 Neutral	₹105.62B	25.09		0.35%	0.55%	17.27%

MM Forgings Limited Corporate Events

MM Forgings Limited Appoints New Secretarial Auditor

MM Forgings Limited has announced the appointment of Shri V. Shankar as the Secretarial Auditor for a five-year term, following approval at the company’s 79th Annual General Meeting. This strategic appointment is expected to enhance the company’s compliance and governance standards, as Shri V. Shankar brings over 30 years of experience in the secretarial field, ensuring robust auditing practices.