Views on MM Forgings Ltd. 4QFY2016 Results - Angel Broking

Views of Mr. Milan Desai (Research Analyst - Mid Caps, Angel Broking) on MM Forgings Ltd. 4QFY2016 Results:

"For 4QFY2016, the company reported numbers that were marginally below our estimates. The top-line during the quarter de-grew marginally by 1.7% YoY to INR 124 cr. The same was below our estimate of INR 129cr. The raw material cost increased by 674bp YoY to 44.2% of sales, which can be attributed to recent rebound in metal prices. The employee, power and other expenses declined by 54bp YoY, 180bp YoY and 380bp YoY to 10.8%, 8.5% and 16.0% of sales, respectively. As a result, the EBITDA margin declined by 60bp to 20.5% against our estimate of 21.0%. Consequently, the net profit declined by 1.3% YoY to INR11cr vis-à-vis our expectation of INR12cr. We maintain our BUY rating on the stock."

Shares of M.M.FORGINGS LTD.-$ was last trading in BSE at Rs.463 as compared to the previous close of Rs. 462.1. The total number of shares traded during the day was 1378 in over 26 trades.

The stock hit an intraday high of Rs. 464.8 and intraday low of 458. The net turnover during the day was Rs. 635232.

Source : Equity Bulls

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