Buy MM Forgings, target price Rs 1250: ICICI Direct

ICICI Direct has buy call on MM Forgings with a target price of Rs 1250. The current market price of M M Forgings Ltd. is Rs 885.65. 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 2144.07 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
The company’s stock price has grown at ~24% CAGR from ~Rs 305 levels in June 2017, thereby vastly outperforming Nifty Auto Index. It retains BUY rating on the stock amid supportive macroeconomics, increasing share of machining in product profile & inexpensive valuations

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.