1:1 bonus share after 6 years and Rs 8/share dividend announced: Keep an eye on this auto-forging stock as company announces stellar FY24 results!
The stock is up by 45 per cent from its 52-week low of Rs 831 per share.
On Friday, shares of M.M. Forgings Ltd gained 0.43 per cent to Rs 1,203.65 per share from its previous closing of Rs 1,198.45 with an intraday high of Rs 1,221 and an intraday low of Rs 1,176.
M.M. Forgings Ltd, founded in 1946, is a leading Indian manufacturer of steel forgings in various grades. They started with retail sales of Royal Enfield bikes but transitioned to forging in 1974. Their products cater to passenger cars, commercial vehicles, agriculture, and off-highway equipment. They are currently expanding their capacity to 120,000 tons and plan to invest in machining and electric vehicle (EV) technologies to meet the growing demand, while also focusing on acquiring new clients and products.
According to Quarterly Results, the net sales increased by 2.4 per cent to Rs 397.49 and net profit increased by 18.2 per cent to Rs 36.20 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 7 per cent to Rs 1,563.07 and net profit increased by 4.7 per cent to Rs 133.49 crore in FY24 compared to FY23.
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The Board of Directors of the company announced bonus shares in the ratio 1:1 i.e., 1 bonus equity share of Rs 10 each fully paid up for every 1 existing equity share of Rs 10 each fully paid - up, to the eligible members by capitalizing a sum not exceeding Rs 24,14,08,000 out of the sum standing to the credit of General Reserves and/or Securities Premium account. Additionally, the Board of Directors of the company have approved an interim dividend of Rs 8 per share having a face value of Rs 10 each. The record date for bonus shares is fixed as July 16, 2024 and the record date for interim dividend is fixed as June 14, 2024.
The company has a market cap of over Rs 2,900 crore. The stock is up by 45 per cent from its 52-week low of Rs 831 per share. Investors should keep an eye on this Small-Cap auto-forging stock under their watchlist.
Disclaimer: The article is for informational purposes only and not investment advice.
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