Buy M M Forgings, target price Rs 1021: Anand Rathi

Anand Rathi has buy call on M M Forgings with a target price of Rs 1021. The current market price of M M Forgings is Rs 792.7. Time period given by analyst is one year when M M Forgings Ltd. price can reach defined target.

M M Forgings Ltd., incorporated in the year 1946, is a Small Cap company (having a market cap of Rs 1906.16 Crore) operating in Auto Ancillaries sector.

M M Forgings Ltd. key Products/Revenue Segments include Steel Forgings and Power Generation for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 327.96 Crore, up 9.62 % from last quarter Total Income of Rs 299.17 Crore and up 11.20 % from last year same quarter Total Income of Rs 294.92 Crore. Company reported net profit after tax of Rs 28.42 Crore in latest quarter.

Investment Rationale
Robust off-take in M&HCVs led to MM Forgings’ strong revenue in Q4 FY22. Geopolitical tensions and the ongoing semiconductor shortage curbed exports, but, demand is strong in other key markets. It continues to expect strong growth in domestic M&HCVs on revived economic activity and high-fleet utilisation. Accordingly, it maintains a buy at a TP of Rs1,021 (16x FY24e).

Promoter/FII Holdings
Promoters held 56.34 per cent stake in the company as of 31-Mar-2022, while FIIs owned 0.78 per cent, DIIs 19.62 per cent.