MM Forgings manufactures various grades of forgings (carbon, alloy, micro-alloy and stainless steels) in the 200 gm to 60 kg weight range, mainly for automotives (accounting for 80% of sales). 

The company had a disappointing Q1FY17. Net sales dropped 5% (YoY) at Rs.115 crore. The company managed to keep a tight leash on the costs mainly on account of 5% drop in raw material and 18% drop in power & fuel costs. Yet, EBITDA came in 5% lower at Rs.23 crore and margins too slumped from 21.75% to 19.33%.

The company’s equity is at Rs.12.07 crore and EPS for the quarter came in at Rs.8.66 (FV of Rs.10). Promoters stake is at 56.41%.