1:1 Bonus Issue; Smallcap Forging Stock Ex-Dividend Next Week For Rs 8/Sh Dividend Payout; Buy For 13% Gains

Smallcap auto and components equipment, MM Forging dropped by 3% in the trading week that ended on June 7, 2024. However, year-to-date, the stock zoomed by 21%. In a year, the stock rallied by 40%. The stock will be in focus next week due to its dividend payout of Rs 8 per share, which is the highest ever. After the dividend, MM Forgings is set to deliver free bonus shares.

On June 7, the stock ended at Rs 1185.65 apiece, up by 1.13% on BSE with a market cap of Rs 2,862.25 crore. The stock's 52-week high and low are at Rs 1,301.95 apiece and Rs 831 apiece respectively.

MM Forgings Dividend:

The company has announced an Rs 8 per share dividend for FY24. For the same, the record date to determine eligible shareholders has been fixed on June 14, 2024. The Interim Dividend shall be payable on or before 21 June 2024.

This will be the highest dividend payout by MM Forgings. In 2023 and 2022, the company paid dividends of up to Rs 6 per share each. As per the Trendline data, the company paid up to 29 dividends since July 2001.

MM Forgings Bonus Shares:

MM Forgings has recommended bonus issue of 1:1 ratio -- meaning -- one (1) bonus equity share of 310/- each fully paid-up for every One existing equity shares of Rs 10/- each fully paid-up, to the eligible members by capitalizing a sum not exceeding 24,14,08,000/ (Rupees Twenty Four Crores Fourteen Lakhs and Eight Thousand only) out of the sum standing to the credit of General Reserves and/or Securities Premium account, subject to the approval of shareholders in the ensuing Annual General Meeting and other required statutory/regulatory approval as may be necessary. The date by which Bonus Shares shall be credited/dispatched as stipulated by law is 28 July 2024.

The record date for determining the shareholders eligible for the issue of bonus shares is fixed as 16 July 2024, which is subject to the approval of shareholders.

Should You MM Forgings Share Price?

As per Trendline, the consensus recommendation from 2 analysts for M M Forgings Ltd. is STRONG BUY. EPS is expected to grow by 9.7% in FY25. The 1-year average target price is Rs 1,345 on the company, hinting at a 13% potential upside from the current market price.

About MM Forgings:

MMF is a leading manufacturer of closed-die hot forgings. All our forging lines are equipped with state-of-the-art billet temperature control mechanisms. MMF boasts of a wide variety of production lines to cater to satisfy the variety of customer needs.

MMF has automated high-speed production lines and also can take parts with small batch sizes. MMF intends to be a "One-stop shop" for the customer's closed die forging requirements.

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