1 MMFL share price target reports by brokerages below. See what is analyst's view on MMFL share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
The stock currently trades at 18.4 x FY20e EPS of Rs 21.34 and 15.3x FY21e EPS of Rs 25.67. Since the auto industry is currently under stress, vigorous volume growth is not expected over the next few quarters. However, SIAM expects things to turnaround in 2020-21 with the upcoming scrappage policy. Revival in volumes would trigger OPM improvement thereby driving earnings growth of some 20.3% next fiscal. On balance, we assign “accumulate” rating on the stock with a target price of Rs 436 based on 17x FY21e EPS of Rs 25.67.
We estimate sales, EBITDA, PAT will grow at 13.1%, 14.8%, 9.7% CAGR, respectively, in FY19P-21E. With the CV industry in India and the US likely to peak out in FY20E, volume growth prospects appear moderate, going forward. We value the company at 12.5x FY21E EPS of | 40.6/share to arrive at a target price of Rs 510. We have a HOLD rating on the stock. We do not ascribe any value to the 2018 acquisition of DVS Industries as profitability at the subsidiary is muted and operations are yet to turn around.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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