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MM Forgings - Strong Growth On The Anvil; Commercial Vehicle Cyclical Recovery Play: ICICI Direct

MM Forgings - Strong Growth On The Anvil; Commercial Vehicle Cyclical Recovery Play: ICICI Direct

Workers prepare to forge an automobile part. (Photographer Tomohiro Ohsumi/Bloomberg)
Workers prepare to forge an automobile part. (Photographer Tomohiro Ohsumi/Bloomberg)

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.

ICICI Direct Report

MM Forging Ltd. is a prominent forging player serving India, Europe and U.S. markets (FY21 geographical mix – domestic 50%, exports 50%).

MM Forgings posted decent Q1 FY22 results.

Standalone revenue decline was limited to 16.2% QoQ at Rs 239 crore versus more than 50% medium and heavy commercial vehicle volume decline domestically; largely aided by exports.

Ebitda margins were down ~170 basis points QoQ to 18.1%, tracking negative operating leverage; gross margins rose ~100 bps sequentially.

Consequent profit after tax declined ~21% sequentially to Rs 24 crore.

Click on the attachment to read the full report:

ICICI Direct MM Forging Company Update.pdf

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