16 July Record Date For 1:1 Bonus Shares: Buy At Rs.1340-1580, Stop Loss - Rs.1160; Check Target Price

MM Forgings serves the closed die forging requirements of the domestic and foreign markets and operates across India. The small-cap firm that operates in the consumer discretionary space has announced the 1:1 bonus share record date. The proposed bonus equity shares will be credited to the member's beneficiary account with their respective depository participant if they hold equity shares in dematerialized form, as the allocation of shares in bonus issues will only be made in this manner.

MM Forgings Bonus Shares Record Date

"We wish to inform you that the Company has fixed Tuesday, 16 July 2024 as the record date for ascertaining eligibility of Members who shall be entitled for allotment of bonus equity shares in the ratio of 1:1 i.e., 1 (One) Equity Share of Rs 10/- each for every 1 (One) existing Equity Share of Rs 10/- each," said the company in a stock exchange filing.

"The proposed bonus share issue would necessitate an increase in the Company's authorized share capital and consequently alter Clause V of its Memorandum of Association. Pursuant to NCLT approving the scheme of amalgamation of Cafoma Autoparts Private Limited (Cafoma) with the Company, the Cafoma's authorized share capital has been consolidated with the Company, increasing it by Rs 9 Crores. The current authorized share capital is Rs 39,00,00,000 divided into 3,90,00,000 equity shares of Rs 10 each. The Board of Directors, at its meeting on 29 May 2024, proposed an increase in authorized share capital to Rs 51,00,00,000, divided into 5,10,00,000 equity shares of Rs 10 each," MM Forgings stated in a statement.

Important Note For Shareholders Regarding Bonus Shares

"The allotment of shares in bonus issue shall be made only in dematerialized form and thus, in case of members who hold equity shares in dematerialized form, the proposed bonus equity shares shall be credited to the respective beneficiary accounts of the Members with their respective Depository Participant(s) and in the case of Members who hold equity shares in physical form, the bonus equity shares shall be transferred to the Suspense Account opened in this regard, within such timeline as prescribed. The holder of securities in physical form are hence requested to update their demat account details by submitting KYC forms with RTA for getting their bonus shares credited to their demat account directly," MM Forgings informed stock exchanges.

"The equity shares of your Company are listed and actively traded on National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE). The above bonus issue would also encourage the participation of small investors by making equity shares of the Company affordable, increase the liquidity of the equity shares and will expand the retail shareholders' base," the company further said in a regulatory filing.

MM Forgings Share Price Target

"Steel forgings manufacturer MM Forgings Ltd's current market price of Rs.1312 has piqued the interest of traders and investors alike. As per my analysis, this stock could be good for mid-term investing. MMFL's string financials, as evidenced by its 4X increase in profit from Rs.57.42 crore in 2020 to Rs.199 crore in 2024, and a jump from Rs.54.52 crore to Rs.75.26 crore in its operating profit between the same period. Notably, its RSI readings of 65 on the daily, 76 on the weekly, and 70 on the monthly timeframe, suggest higher valuation on the higher timelines. Hence, those willing to explore this stock should consider buying at a dip, preferably near the Rs.1255-1280 range for a target price of Rs.1340-1580. However, they must set a stop loss at Rs.1160 to limit loss," commented V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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