Anand Rathi's research report on MM Forgings
Lower our Rs819m estimate due to less-than-expected revenues, MM Forgings’ Q4 EBITDA slipped 4% y/y to Rs724m. Growth would be supported by the domestic M&H CV volume upswing, which would come at a 5% CAGR over FY25-27 on economic activity and replacement demand. Growth would be driven by new products (gear blanks, long shafts, larger crankshafts) and market-share gains. The oversea CV sector may be muted in the near term, but export revenue would outstrip that of the industry due to new orders. With a higher wallet-share and sharper focus on EV-specific components, its outperformance would persist.
Outlook
The stock quotes at attractive valuations of 13x/11x FY26e/FY27e EPS. We expect 9/11/11% revenue/EBITDA/PAT CAGRs over FY25-27. We retain a Buy, with a lower 12-mth TP of Rs480, 14x (past mean) FY27e EPS (earlier Rs720, 16x FY26e EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
