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Jun 28, 2021, 8 tweets

MM Forgings Limited – A Thread

The shares of the company closed at INR XYZ having reached the 52-week high during the day
The shares have risen 257.50% in 1yr. vs. 50.64% rise of SENSEX

Want to know what’s happening with the company?

1/ About the Company
The company was founded in 1946
MM Forgings has become a leading manufacturer of freight & passenger rolling stock
They have an established presence in automotive and industrial forgings
The company has a well-established exports market in US, Canada & Europe

2/ Brief History
It began as Madras Motors Limited dealing in Royal Enfield Motor Cycles
Having huge ambitions, the company began forging in 1974
The business expanded steadily in the 80s
In 1990 the dealership business closed and they expanded the forging business

3/ Outstanding Q4 Performance
Covid slowed down the company in H1FY21
However, in H2FY21 the company presented exemplary growth
Q4FY21 Standalone profits doubled (INR 30.13Cr)
Net standalone sales increased 81.26 % YoY
Even the margins had significant favourable movement

4/ Annual Financials
The annual sales remained flat with a 40bps decline in margins
However, the PAT also remained similar to last year
The company declared a dividend of INR 5 per share

5/ Riding the Growth curve
The revenue grew each month as the company managed to cross the INR 100 Cr in March
Expected to cross INR 1K Cr. Revenue in FY22
The Indian CV market is operating at 50%-60%
Recovery is expected in FY22
The company has additional idle capacity

6/ Peer Comparison

7/ Conclusion
The stock price continues to skyrocket
What are your expectations?
Let us know.

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