ScoreWhy is MM Forgings Ltd. ?
1
The company has declared negative results for the last 6 consecutive quarters
- PBT LESS OI(Q) At Rs 21.11 cr has Fallen at -33.2% (vs previous 4Q average)
- PAT(Q) At Rs 16.57 cr has Fallen at -40.3% (vs previous 4Q average)
- ROCE(HY) Lowest at 9.33%
2
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -31.89% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to MM Forgings should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is MM Forgings for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
MM Forgings
17.14%
-0.88
36.17%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.33%
EBIT Growth (5y)
37.98%
EBIT to Interest (avg)
4.54
Debt to EBITDA (avg)
3.40
Net Debt to Equity (avg)
1.06
Sales to Capital Employed (avg)
0.88
Tax Ratio
27.20%
Dividend Payout Ratio
15.85%
Pledged Shares
0
Institutional Holding
10.29%
ROCE (avg)
12.47%
ROE (avg)
16.10%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
38
Price to Book Value
2.10
EV to EBIT
17.15
EV to EBITDA
10.79
EV to Capital Employed
1.54
EV to Sales
1.92
PEG Ratio
NA
Dividend Yield
0.99%
ROCE (Latest)
9.34%
ROE (Latest)
10.31%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 233.19 cr
NET SALES(Q)
Highest at Rs 413.64 cr
-16What is not working for the Company
PAT(Latest six months)
At Rs 34.14 cr has Grown at -41.60%
INTEREST(Latest six months)
At Rs 41.58 cr has Grown at 30.14%
ROCE(HY)
Lowest at 9.34%
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.76 times
PBT LESS OI(Q)
At Rs 22.84 cr has Fallen at -16.7% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at 1.31 times
Loading Valuation Snapshot...
Here's what is working for MM Forgings
Net Sales - Quarterly
Highest at Rs 413.64 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 233.19 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for MM Forgings
Profit After Tax (PAT) - Latest six months
At Rs 34.14 cr has Grown at -41.60%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 22.84 cr has Fallen at -16.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 27.43 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Latest six months
At Rs 41.58 cr has Grown at 30.14%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 3.76 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Debt-Equity Ratio - Half Yearly
Highest at 1.31 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
