MM Forgings Gets 'Buy' From Anand Rathi On Attractive Valuations

Anand Rathi retains a Buy at a lower 12-month target price of Rs 480, 14x FY27e EPS (earlier Rs 720, 16x FY26e EPS). Our multiple is closer to the mean of the past 10-year average..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Lower our Rs 819 million estimate due to less-than-expected revenues, MM Forgings Ltd.’s Q4 Ebitda slipped 4% y/y to Rs 724 million. Growth would be supported by the domestic medium and heavy commercial vehicles volume upswing, which would come at a 5% CAGR over FY25-27 on economic activity and replacement demand. Growth would be driven by new products (gear blanks, long shafts, larger crankshafts) and market-share gains. The overseas CV sector may be muted in the near term, but export revenue would outstrip that of the industry due to new orders. With a higher wallet-share and sharper focus on EV-specific components, its outperformance would persist. The stock quotes at attractive valuations of 13x/11x FY26e/FY27e EPS. We expect 9/11/11% revenue/Ebitda/PAT CAGRs over FY25-27. We retain a Buy, with a lower 12-month target price of Rs 480, 14 times (past mean) FY27e EPS (earlier Rs 720, 16x FY26e EPS)..Click on the attachment to read the full report:.May Auto Sales Preview: Positive Trends In Tractors, 2Ws; Anand Rathi Prefers Escorts Kubota, Maruti Suzuki.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

MM Forgings Gets 'Buy' From Anand Rathi On Attractive Valuations

The stock quotes at attractive valuations of 13x/11x FY26e/FY27e EPS and Anand Rathi expects 9/11/11% revenue/Ebitda/PAT CAGRs over FY25-27.

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