MM Forging’s Q3 Margin Below Estimates; Outlook Remains Positive: IDBI Capital

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IDBI Capital Report

MM Forgings Ltd.’s Q3 FY21 result was ahead of our estimates on all parameters except Ebitda margin which stood at 15.2% versus our estimates of 17.6% due to lower export sales and relatively higher operating expenses.

Currently revenue contribution from export market for the company is approximately 52% whereas North America/European contributes ~20%/22% respectively.

We believe NA/European market hit hard due to Covid-19 and recently announced lockdown in European countries and possible lockdown in U.S. region would impact Q4 FY21 numbers.

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