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M M Forgings Ltd logo

M M Forgings Ltd

NSE: MMFL BSE: 522241

455.65

(1.98%)

Sun, 15 Mar 2026, 08:14 pm

M M Forgings Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3x coverage).
  • M M Forgings's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • M M Forgings's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • M M Forgings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • M M Forgings is profitable, therefore cash runway is not a concern.
  • M M Forgings is profitable, therefore cash runway is not a concern.
  • M M Forgings's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
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Cons

  • Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.7x debt.
  • The level of debt compared to net worth has increased over the past 5 years (58.9% vs 141.7% today).
  • M M Forgings's level of debt (141.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the M M Forgings board of directors is about average.
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Cons

  • Vidyashankar's remuneration is higher than average for companies of similar size in India.
  • Vidyashankar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

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Pros

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    Cons

    • M M Forgings is not covered by any analysts.
    • M M Forgings has significant price volatility in the past 3 months.

    past

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    Pros

    • M M Forgings's year on year earnings growth rate has been positive over the past 5 years.
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    Cons

    • M M Forgings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • M M Forgings used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
    • M M Forgings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • M M Forgings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • M M Forgings's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

    value

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    Pros

    • M M Forgings is good value based on earnings compared to the IN Metals and Mining industry average.
    • M M Forgings is good value based on earnings compared to the India market.
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    Cons

    • M M Forgings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • M M Forgings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • M M Forgings is overvalued based on assets compared to the IN Metals and Mining industry average.
    • 522241 underperformed the Metals and Mining industry which returned -28.6% over the past year.
    • 522241 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:522241 is up 3% underperforming the Metals and Mining industry which returned 7.5% over the past month.
    • BSE:522241 is up 3% underperforming the market in India which returned 8% over the past month.

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