ICICI Direct has given Buy recommendation for MM Forgings with a target price of Rs. 1250 in its research report issued on Jun 07, 2022
ICICI Direct’s research report on MM Forgings
MM Forgings (MMF) is a prominent forging player serving India, Europe and US markets (FY22 geographical mix – domestic ~46%, exports ~54%). FY22 segment mix – CV 85%, PV 10%, Others 5% • FY22 capacity utilisation at ~61%, capacity to surpass 1.2 lakh tonne in FY23.
Outlook
We retain BUY rating on the stock amid supportive macroeconomics, increasing share of machining in product profile & inexpensive valuations. Introducing FY24E, we now value MMF at 14x PE on FY24E basis for a revised target price of Rs 1250 per share (earlier target price Rs 1125).