MM Forgings - Continuing To Expect Strong Domestic, Export Growth: Anand Rathi

A metal rod bound for an automobile part is forged in the forging department inside a factory. ( Photographer: Tomohiro Ohsumi/Bloomberg)

MM Forgings - Continuing To Expect Strong Domestic, Export Growth: Anand Rathi

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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.

Anand Rathi Report

We expect MM Forgings Ltd. to post very strong growth in domestic medium and heavy commercial vehicles, driven by anticipated replacement demand assuming no further lockdowns, and strong exports.

The company is reasonably confident about export growth, given the strong momentum in Class-five and eight trucks in the U.S.

Accordingly, we expect strong growth.

Also, with more products from more press lines, we expect machining content to go up 55% from 52% now.

With strong volume growth driven by operating leverage and greater machining content, we expect margin expansion in FY22 and FY23.

Risk- Less-than-estimated volume growth.

Click on the attachment to read the full report:

Anand Rathi MM Forgings Company Update.pdf

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