Closed die forgings manufacturer MM Forgings said on May 26 that the board will consider issue of bonus shares along with March quarter results in its upcoming meeting on May 29.
If approved, this will mark the company’s first bonus share issuance in six years, with the last one occurring in 2018 when shareholders received one free share for each share held. Prior to that, another 1:1 bonus issue was made in 2008.
The company will also consider a dividend payout to its shareholders along with the bonus shares, the company said in its exchange filing. It has paid its highest dividends in the last two years, distributing ₹6 per share in both 2022 and 2023.
MM Forgings is a significant exporter of forgings in India, positioning itself as a comprehensive provider of closed die forgings for both domestic and international markets, according to its website.
The company operates 10 plants with a combined capacity of 1.1 lakh metric tonnes.
Brokerage firm Anand Rathi has given a ‘buy’ rating to the MM Forgings stock, with a target price of ₹1,200.
For the quarter ending December 31, 2023, the company reported a consolidated total income of ₹404.15 crore, which is a 0.85 per cent increase from the previous quarter’s total income of ₹400.73 crore and a 7.41 per cent increase compared to the same quarter last year’s total income of ₹376.27 crore. The company also reported a net profit after tax of ₹33.54 crore for the latest quarter.
Shares of MM Forgings declined by 1 per cent on Friday but have gained 15.5 per cent year-to-date in 2024. Over the past 12 months, the stock has risen by 33 per cent, and it has doubled over the last five years.
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Published: 26 May 2024, 01:09 PM IST