MM Forgings Intrinsic Value

MMFL • Automobiles
Current Stock Price
₹371.55
Primary Intrinsic Value
₹164.64
Market Cap
₹1783 Cr
-50.0% Downside
Median Value
₹185.83
Value Range
₹111 - ₹515
Assessment
Trading Above Calculated Value
Safety Margin
-99.9%

MMFL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹164.64 ₹131.71 - ₹197.57 -55.7% EPS: ₹13.72, Sector P/E: 12x
Book Value Method asset ₹185.83 ₹167.25 - ₹204.41 -50.0% Book Value/Share: ₹185.83, P/B: 1.0x
Revenue Multiple Method revenue ₹254.67 ₹229.20 - ₹280.14 -31.5% Revenue/Share: ₹318.33, P/S: 0.8x
EBITDA Multiple Method earnings ₹315.00 ₹283.50 - ₹346.50 -15.2% EBITDA: ₹252.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹515.03 ₹412.02 - ₹618.04 +38.6% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹111.47 ₹100.32 - ₹122.62 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹113.05 ₹101.75 - ₹124.36 -69.6% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹185.78 ₹167.20 - ₹204.36 -50.0% ROE: 7.6%, P/E Multiple: 10x
Graham Defensive Method conservative ₹239.51 ₹215.56 - ₹263.46 -35.5% EPS: ₹13.72, BVPS: ₹185.83
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

MMFL Intrinsic Value Analysis

What is the intrinsic value of MMFL?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of MM Forgings (MMFL) is ₹185.83 (median value). With the current market price of ₹371.55, this represents a -50.0% variance from our estimated fair value.

The valuation range spans from ₹111.47 to ₹515.03, indicating ₹111.47 - ₹515.03.

Is MMFL undervalued or overvalued?

Based on our multi-method analysis, MM Forgings (MMFL) appears to be trading above calculated value by approximately 50.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.41 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 7.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 16.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.65x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹182 Cr ₹3 Cr Positive Free Cash Flow 7/10
March 2024 ₹149 Cr ₹33 Cr Positive Free Cash Flow 7/10
March 2023 ₹160 Cr ₹67 Cr Positive Free Cash Flow 7/10
March 2022 ₹150 Cr ₹87 Cr Positive Free Cash Flow 8/10
March 2021 ₹20 Cr ₹15 Cr Positive Free Cash Flow 8/10