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MM Forgings Limited

MMFLAuto Components

Fundamental Score

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MM Forgings Limited Share Price & Market Analysis

Current Market Price (CMP)
328.25
No change data available
Market Cap
1.58K (Cr)
Industry
Auto Components

Profitability Metrics

Average

Return on Equity

15.58%
Poor

Return on Capital Employed

12.50%
Excellent

Operating Profit Margin (5Y)

18.63%
Average

Dividend Yield

1.22%

Valuation Metrics

Excellent

Price to Earnings

12.56x

Market Capitalization

1.58K (Cr)

Industry P/E

29.57x

Growth Metrics

Poor

YoY Quarterly Profit Growth

-31.11%
Poor

YoY Quarterly Sales Growth

-5.35%
Excellent

Sales Growth (5Y)

15.22%
Excellent

EPS Growth (5Y)

24.14%
Excellent

Profit Growth (5Y)

24.13%

Financial Health

Poor

Debt to Equity

1.27x
Excellent

Interest Coverage

3.56x
Poor

Free Cash Flow (5Y)

-284.75 (Cr)

Ownership Structure

Good

Promoter Holding

56.34%
Poor

FII Holding

1.79%
Average

DII Holding

8.33%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Small-cap
Higher growth potential with higher volatility.
56.34%
Promoter Holding
1.58K (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of MMFL across key market metrics for learning purposes.

Positive Indicators

8 factors identified

Strong Return on Equity (15.58%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Strong Operating Margins (18.63%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Attractive Valuation (P/E: 12.56 vs Industry: 29.57)

Observation: Trading at discount to industry peers.

Analysis: P/E below industry average may present value opportunity if fundamentals support the business case.

Consistent Growth Track Record (15.22% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Excellent EPS Growth (24.14% CAGR)

Observation: Outstanding 5-year earnings per share compound growth.

Analysis: EPS CAGR >15% indicates strong wealth creation potential and effective capital allocation over extended periods.

Strong Profit Growth Track Record (24.13% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Balanced Promoter Holding (56.34%)

Observation: Optimal balance between promoter control and public float.

Analysis: Promoter holding in 50-75% range provides management alignment while ensuring adequate liquidity.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

4 factors identified

Profit Decline Concern (-31.11%)

Observation: Significant year-over-year profit contraction observed.

Analysis: Declining profitability requires investigation into underlying causes. Monitor for recovery signs and management guidance.

Revenue Contraction (-5.35%)

Observation: Sales decline may indicate market challenges or competitive pressures.

Analysis: Negative revenue growth requires analysis of market conditions and competitive positioning. Monitor recovery strategies.

Elevated Debt Levels (D/E: 1.27)

Observation: High leverage increases financial risk and interest burden.

Analysis: High debt-to-equity ratios require monitoring of debt servicing capability and cash flow generation.

Negative Free Cash Flow (₹-284.75 Cr over 5Y)

Observation: Cash outflows exceed inflows, indicating capital intensity or working capital issues.

Analysis: Negative FCF requires analysis of capital expenditure cycle and working capital management efficiency.

📊 Educational Market Overview

Disclaimer: The ratings and scores are generated algorithmically from publicly available market data and are provided for educational and informational purposes only. They do not constitute investment advice, recommendation, or solicitation to buy/sell any securities.

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Financial Statements

Comprehensive financial data for MM Forgings Limited

About MMFL

Company Details

Symbol:MMFL
Industry:Auto Components
Sector:Auto Components & Equipments

Market Information

Market Cap:1.58K (Cr)
P/E Ratio:12.56
Beta:N/A

Performance

52W High:N/A
52W Low:N/A
Dividend Yield:1.22%

MMFL Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)15.58%
Return on Capital Employed12.50%
Operating Profit Margin (5Y)18.63%
Debt to Equity Ratio1.27
Interest Coverage Ratio3.56

Growth & Valuation

Sales Growth (5Y)15.22%
Profit Growth (5Y)24.13%
EPS Growth (5Y)24.14%
YoY Quarterly Profit Growth-31.11%
YoY Quarterly Sales Growth-5.35%

Frequently Asked Questions

What is the current price of MMFL?

MMFL is currently trading at ₹328.25 with a gain of 0.00% today. The current market price (CMP) represents the last traded price of MMFL shares on the stock exchange. This price fluctuates throughout trading hours based on supply and demand. You can track real-time price movements, percentage changes, and trading volume in the header section.

What is the P/E ratio of MMFL and what does it mean?

MMFL has a P/E ratio of 12.56x compared to the industry average of 29.57x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹13 for every ₹1 of annual earnings. This is lower than the industry average, which might indicate undervaluation or slower growth expectations.

How is MMFL performing according to Bull Run's analysis?

MMFL has a Bull Run fundamental score of 44.3/100, which indicates concerns that require careful analysis. This comprehensive rating is based on 15+ financial parameters including profitability (ROE: 15.58%), growth metrics, valuation ratios, and financial health indicators. The score updates quarterly with new financial data and helps you quickly assess overall investment quality.

What sector and industry does MMFL belong to?

MMFL operates in the Auto Components industry. This sector classification helps understand the broader economic trends, regulatory framework, and competitive landscape affecting MM Forgings Limited. Companies in this industry typically face similar market dynamics, cyclical patterns, and macroeconomic factors. Understanding the industry context is crucial for peer comparison and assessing how sector-specific trends might impact the stock's performance.

What is Return on Equity (ROE) and why is it important for MMFL?

MMFL has an ROE of 15.58%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently MM Forgings Limited generates profits from shareholders' equity. An ROE of 16% means the company generates ₹16 profit for every ₹100 of shareholders' equity. This metric is crucial for assessing management's ability to create value for shareholders.

How is MMFL's debt-to-equity ratio and what does it indicate?

MMFL has a debt-to-equity ratio of 1.27, which indicates high leverage that increases financial risk. This means the company has ₹127 of debt for every ₹100 of equity. Higher leverage can amplify returns during good times but increases bankruptcy risk during downturns.

What is MMFL's dividend yield and is it a good dividend stock?

MMFL offers a dividend yield of 1.22%, which means you receive ₹1.22 annual dividend for every ₹100 invested. The focus appears to be more on growth rather than dividend income. Dividend yield is calculated as annual dividend per share ÷ current share price × 100. Evaluate dividend consistency over 5+ years and free cash flow coverage for sustainability.

How has MMFL grown over the past 5 years?

MMFL has achieved 5-year growth rates of: Sales Growth 15.22%, Profit Growth 24.13%, and EPS Growth 24.14%. This consistent double-digit growth indicates a strong business model and competitive positioning. Sales growth indicates market expansion, profit growth shows operational efficiency, and EPS growth directly impacts share price appreciation potential.

What is the promoter holding in MMFL and why does it matter?

Promoters hold 56.34% of MMFL shares, with 0.00% of promoter shares pledged. This high promoter holding indicates strong management confidence and alignment with shareholders. Low pledging indicates financial stability of promoters. Recent change in promoter holding: 0.00%.

How does MMFL compare with its industry peers?

MMFL trades at P/E 12.56x vs industry average 29.57x, with ROE of 15.58% and ROCE of 12.50%. The stock appears undervalued relative to peers based on P/E ratio. Peer comparison helps identify whether MMFL is outperforming its competitive set in profitability, growth, and valuation metrics.

What is MMFL's market capitalization and what category does it fall into?

MMFL has a market capitalization of ₹1585 crores, making it a Large-cap stock. Large-cap stocks offer stability and liquidity but typically slower growth. Market cap is calculated as current share price × total outstanding shares, representing the company's total market value.

What are the key financial ratios to consider for MMFL?

Key ratios for MMFL: ROE 15.58% (Excellent), ROCE 12.50%, P/E 12.56x, Debt-to-Equity 1.27, Interest Coverage 3.56x. These ratios help assess profitability (ROE, ROCE), valuation (P/E), financial health (D/E, Interest Coverage), and overall investment quality. Compare these with industry medians and historical trends for meaningful analysis.

How volatile is MMFL stock and what is its beta?

MMFL has a beta of N/A, which means it is less volatile than the market and offers defensive characteristics. Beta measures price volatility relative to the Nifty 50. Lower beta stocks provide stability during uncertain market conditions. Consider beta alongside your risk tolerance and portfolio diversification strategy.

What is the 52-week high and low for MMFL?

MMFL has a 52-week high of ₹N/A and low of ₹N/A. Currently trading at ₹328.25, the stock is within its annual trading range. Trading near highs indicates strong momentum but limited upside potential.

What are the key risks associated with investing in MMFL?

Key risks for MMFL include: Market volatility (Beta: N/A), financial leverage (Debt-to-Equity: 1.27), and operational challenges. The stock has a Fundamental Score of 44.3/100, indicating higher risk requiring thorough due diligence. Sector-specific risks in Auto Components include regulatory changes, economic cycles, and competitive pressures. Consider your risk tolerance, investment horizon, and portfolio diversification before investing. Past performance doesn't guarantee future results.

What is MMFL's operating profit margin and how has it trended?

MMFL has a 5-year average Operating Profit Margin (OPM) of 18.63%, which is good and shows decent operational efficiency. Operating Profit Margin shows operational efficiency by measuring operating profit as a percentage of revenue. This strong margin indicates competitive advantages and operational leverage. Compare with industry peers to understand relative performance.

How is MMFL's quarterly performance in terms of sales and profit growth?

MMFL's recent quarterly performance shows YoY Sales Growth of -5.35% and YoY Profit Growth of -31.11%. Growth rates indicate the current business trajectory and market demand. Sales growth shows market demand while profit growth reveals operational efficiency and margin management.

What is the FII and DII holding pattern in MMFL?

MMFL has FII holding of 1.79% and DII holding of 8.33%, totaling 10.12% institutional ownership. This institutional participation level shows the confidence of professional money managers. Monitor quarterly changes in institutional holdings for investment flow trends and sentiment.