MM Forging Q4 Review - Strong Performance; Outlook Remains Positive: IDBI Capital

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IDBI Capital Report

MM Forgings Ltd.'s Q4 FY21 result was ahead of our estimates on all parameters.

Ebitda margin stood at 19.8% versus our estimates of 16.1% due to lower operating expenses.

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

We believe North America/European market to recover strongly on the back of strong gross domestic product growth forecast.

On domestic front, we expect domestic commercial vehicle industry to grow in double digit from multiyear low base due to higher push in infrastructure and construction activity by government.

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