According to reports from Moneycontrol and The Hindu BusinessLine, Anand Rathi has issued a buy rating on MM Forgings with a target price of Rs 600, representing a significant increase from its previous target of Rs 430. The brokerage's research report dated February 18, 2026 maintains a bullish outlook on the stock, valuing it at 16x FY28e EPS compared to the earlier valuation of 14x Sep-27e EPS. The latest analysis from The Hindu BusinessLine confirms the buy rating with a revised target price, reflecting the company's strong fundamentals and growth prospects.
As reported by Moneycontrol and The Hindu BusinessLine, MM Forgings reported Rs 71.6 crore EBITDA in Q3FY26, which was down 2% year-on-year but broadly in-line with the brokerage's estimate of Rs 70.6 crore. The company's standalone revenue grew 11% to Rs 405 crore (vs estimate of Rs 376 crore) due to higher export revenue, with domestic revenue growing 14% to Rs 256 crore and exports growing 7% to Rs 148 crore. However, EBITDA fell 2% to Rs 71.6 crore due to lower-than-expected gross margin of 52.9% (contracted 440 bps), while PAT fell 19% to Rs 25.8 crore, broadly in-line with estimates. At the current market price of Rs 472.50, the stock trades at an attractive valuation of approximately 25% discount to the past 1-year forward mean, with 14x/12x FY27/28e EPS multiples.
According to Anand Rathi's analysis reported by Moneycontrol and The Hindu BusinessLine, the company expects revenue/EBITDA to clock 13%/18% CAGR over FY26-28e, driven by several factors including an expected 7% CAGR in domestic M&HCV volume over FY26-28e on improved economic activities and better replacement demand following GST reforms. The brokerage anticipates a likely rebound in the overseas CV sector in FY27/28e on a low base and early buying before emission norms implementation, with FY27 double-digit growth expected despite muted near-term performance. The company is expected to achieve higher-than-the-industry revenue growth due to new orders, products and higher machining/heavy forging-mix, supported by its positioning to benefit from improved economic activities and better replacement demand on GST reforms.
As reported by Moneycontrol and The Hindu BusinessLine, MM Forgings is expected to achieve higher-than-the-industry revenue growth due to new orders, products and higher machining/heavy forging-mix. The company's growth prospects are supported by its positioning to benefit from improved economic activities, better replacement demand on GST reforms, and potential recovery in overseas markets despite muted near-term performance. The latest analysis from The Hindu BusinessLine confirms the company's strong market positioning and growth trajectory, with the brokerage maintaining its positive outlook on the stock's long-term prospects.
