MMF has come out of a heavy capex cycle (~| 480 crore spent in FY18-20), spent on augmenting tonnage and overall capacity. Expected benefits from demand revival in key markets alongside gradual return to erstwhile margin trajectory makes us turn positive on MMF. Accordingly, we value the company at 15x FY23E EPS of | 35.3/share to arrive at a target price of | 530 (revised from | 330 earlier). We upgrade the stock from HOLD to BUY. We have not included the financials of MMF subsidiary i.e. DVS Industries (FY20...

On the back of an already difficult last fiscal when CV segment posted negative sales growth of 28.8% in n India, deterred by the pandemic, the demand for automobiles declined sharply in the first six mothns this fiscal across India and globally. The demand for CV's in India and light weight...

MMF has undergone a large capacity expansion and improvement programme in the recent past. With capex spend of ~| 500 crore over the last three years, production capacities have grown ~54% from ~65,000 MT per annum to ~1 lakh MT per annum at present. MMF has added heavier press lines (6,300 tons, 7,000 tons, 8,000 tons) with a view to enhance offerings (acquired capabilities to provide 60-100 kg weight products vs. 2.53 kg weight products earlier). Amid soft demand scenario in key geographies, however, balance capex (of ~| 90-100 crore) would be backended and dependent on market recovery. Focus on increasing machining capabilities and value addition is expected to aid uptick in margins once...

The Company is a manufacturer of automotive components. It manufactures steel forgings in raw, semi-machined machined and fully machined stages in various...

MM Forgings (MMFG) Q2FY20 standalone revenue stood at Rs1.8bn; below our estimates of Rs1.9bn due to slowdown in domestic truck market and European truck market. EBITDA margin for the quarter stood at 18.2% vs our estimate of 18.8% mainly...

egistered a sales decline of 12.3% (yoy) during first three months of current fiscal (source: SIAM). Slowdown in demand has also led to accumulation of inventory ory at dealers which is likely to continue with advent of new safety and emission norms, prompting leading Indian car makers like Maruti Suzuki to cut production (its sales...

ICRA, a Indian credit rating agency, maintains stable outlook for the CV segment despite liquidity crunch and declining profitability from fleet operators, supported by increased infrastructure activities as a result of stable demand from core freight generating sectors like steel, cement and Exim trade. M&HCV; segment, which has so far remained indifferent to revision in axle load carrying norms, thereby reflecting a healthy...

ICICI Securities Ltd | Retail Equity Research MM Forgings (MMF) made an announcement of bonus shares on May 28, 2018. The ratio was one bonus share for every one existing equity share i.e. 1:1. The record date for the same is July 19, 2018 while the ex-date for the same is today i.e. July 18, 2018. Consequently, MMF's share price, as per yesterday's closing price, has dropped to | 682/share from | 1364/share. Hence, now our target price also stands revised to | 825/share (against earlier target of | 1650/share) post bonus issue of equity shares....

ICICI Securities Ltd | Retail Equity Research MM Forgings' (MMF) Q4FY18 revenue grew 65.6% YoY to | 199.5 crore, driven by both domestic (strong growth from CV segment) and export market (robust US Class 8 truck volumes) EBITDA margins declined 26 bps YoY, 140 bps QoQ to 19.4%, impacted by higher input cost (gross margin contracted 451 bps YoY, 756 bps QoQ). However, it was partly offset by lower other operational expenditure. Reported PAT grew 114.9% YoY to | 27.4 crore...

To meet the growing customer demand, M M Forgings has recently allocated Rs 250 crs (Rs 50 crs for capacity expansion and Rs 200 crs for machining shop, export components, nts, new products and markets) to be completed by December 2018. The expansion cost will be 80% financed through debt and the rest through internal accruals and is expected to...

We recently met the management of MM Forgings (MMF) (earlier Madras Motors) and visited their plant to understand their business model. The company started its forging operations in 1974 and largely caters to the forging requirements of OEMs. MMF has three plants in India with a current capacity of 53,000 MT, which is expected to touch 65,000 MT in FY17E. The company is phasing out its Hammers (forging process) & moving towards more productive & margin accretive press forgings. MMF has diversified revenue mix geography-wise, with India, Europe & US...

MM Forgings (MMFL)' numbers for 4QFY2016 have come in marginally below our estimates. Its top-line for the quarter de-grew by 1.7% yoy to Rs124cr, which is below our estimate of Rs129cr. The EBITDA declined by 4.5% yoy to Rs26cr while the EBITDA margin declined marginally by 60bp yoy to 20.5% (against our estimate of 21.0%). Further, the ..

For 2QFY2016, MM Forgings (MMFL) reported disappointing numbers on the topline and bottom-line fronts. The top-line during the quarter grew marginally by 1.8% yoy to Rs128cr. The raw material cost declined by 111bp yoy to 38.2% of sales, but the benefits were offset by an increase in employee and power costs. Employee and power costs rose by 162bp yoy and 17bp yoy to 11.1% and 10.4% of sales, respectively. As a result, the EBITDA margin witnessed a slight decline of 37bp yoy to 21.9%. The other income came in at Rs1.3cr vs Rs0.4cr in 2QFY2015. The net profit remained flat at Rs13cr. Sufficient capacity to cater to improving demand across the globe: MMFL is in the midst of increasing its capacity to 65,000MT, which should be in place by 4QFY2016. The company mainly caters to global markets (Europe and USA) with a focus on the commercial vehicle (CV) industry. The company is witnessing healthy demand from USA and we expect demand from the region to remain intact over the next 12-15 month period. We expect demand from Europe to be subdued in the near term and recover thereafter. Additionally, appreciation of the USD against the INR will provide a boost...