MM Forgings to Issue Bonus Shares for First Time in Six Years – Anand Rathi Recommends Buy!
Closed die forgings manufacturer MM Forgings announced on May 26 that its board will consider issuing bonus shares along with the March quarter results in their upcoming meeting on May 29.
If approved, this will be the company’s first bonus share issue in six years. The last bonus issue was in 2018, where shareholders received one free share for each share held. Before that, the company issued another 1:1 bonus in 2008.
In addition to the bonus shares, MM Forgings will also consider paying a dividend to its shareholders. The company has paid its highest dividends in the past two years, with ₹6 per share distributed in both 2022 and 2023.
MM Forgings is a major exporter of forgings in India, providing closed die forgings for both domestic and international markets. The company operates 10 plants with a total capacity of 1.1 lakh metric tonnes.
Brokerage firm Anand Rathi has given a ‘buy’ rating to MM Forgings stock, with a target price of ₹1,200.
For the quarter ending December 31, 2023, MM Forgings reported a consolidated total income of ₹404.15 crore. This is a 0.85 percent increase from the previous quarter’s total income of ₹400.73 crore and a 7.41 percent increase from the same quarter last year’s total income of ₹376.27 crore. The company also reported a net profit after tax of ₹33.54 crore for the latest quarter.
Shares of MM Forgings declined by 1 percent on Friday but have gained 15.5 percent year-to-date in 2024. Over the past 12 months, the stock has risen by 33 percent, and it has doubled over the last five years.
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