MM Forgings Ltd shares increased by 7 percent on Thursday, reaching an intraday high of Rs 927.95. The stock price skyrocketed when the company announced an investment in the EV business.
As per the CNBC Report. The company entered the electric vehicle market through acquisition and consequently, the company is expected to start EV operations in the second quarter of the current fiscal year. For that, the Firm is intended to invest between Rs 500 crore to Rs 750 crore over the following five years and is expected to become a Rs 2,000 crore venture by the year 2030.
It is a small-cap stock with a market capitalization of Rs 2,214, The stock closed at Rs 920.20, up 5.74 percent from the previous close price. The stock has risen 15.65 percent in the last six months, from Rs 795.70 to the present price.
M M Forgings Limited is engaged in the business of manufacturing Steel Forgings in raw, semi-machined, and fully machined stages for a variety of grades of Carbon, Alloy, Micro-Alloy, and Stainless steel. According to the company’s financials, Operating revenue increased by 20 percent to Rs 388 crore in Q4FY23 compared to the same quarter the previous year. Similarly, Net profit rose by 7 percent to Rs 30 crores
Revenue climbed significantly year on year, by 28 percent from Rs 1,139 crore in FY 21-22 to Rs 1,461 crore in FY 22-23. Net profit climbed by 40 percent within the same period, from Rs 91 crore to Rs 127 crore.
Over time, profitability ratios have stayed steady. The ROE for fiscal years 22-23 was 19.01 percent and the ROCE was 19.79 percent, while the net profit margin was 8.75 percent and the operating margin was 14.09 percent. As per the shareholding pattern, promoters own 56.34 percent of the firm, domestic institutional investors (DIIs) own 17.02 percent, and retail investors own 25 percent for fiscal years 22-23.
Written by Omkar C
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