MM Forging Q4 Review - Strong Performance; Outlook Remains Positive: IDBI Capital

Hot forged bearing components move along a conveyor. (Photographer: Krisztian Bocsi/Bloomberg)

MM Forging Q4 Review - Strong Performance; Outlook Remains Positive: IDBI Capital

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

MM Forgings Ltd.'s Q4 FY21 result was ahead of our estimates on all parameters.

Ebitda margin stood at 19.8% versus our estimates of 16.1% due to lower operating expenses.

Currently revenue contribution from export market for the company is ~52% whereas North America/European contributes ~20%/22% respectively.

We believe North America/European market to recover strongly on the back of strong gross domestic product growth forecast.

On domestic front, we expect domestic commercial vehicle industry to grow in double digit from multiyear low base due to higher push in infrastructure and construction activity by government.

Click on the attachment to read the full report:

IDBI Capital MM Forgings Q4FY21 Result Update.pdf

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