NSEI:MMP

Stock Analysis Report

Executive Summary

MMP Industries Limited manufactures and sells aluminum products in India.

Rewards

PE ratio (10.8x) is below the Indian market (13.3x)

Earnings grew by 4.7% over the past year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Flawless balance sheet with acceptable track record.

Share Price & News

How has MMP Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MMP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

MMP

-1.3%

IN Metals and Mining

-0.8%

IN Market


1 Year Return

-20.3%

MMP

-2.9%

IN Metals and Mining

11.1%

IN Market

Return vs Industry: MMP underperformed the Indian Metals and Mining industry which returned -2.9% over the past year.

Return vs Market: MMP underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

MMPIndustryMarket
7 Day0%-1.3%-0.8%
30 Day-8.7%-8.4%-2.3%
90 Day-5.1%4.1%2.1%
1 Year-20.3%-20.3%-1.3%-2.9%13.1%11.1%
3 Yearn/a-7.4%-17.9%22.9%16.2%
5 Yearn/a20.4%1.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is MMP Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MMP Industries undervalued compared to its fair value and its price relative to the market?

10.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MMP (₹100.9) is trading above our estimate of fair value (₹75.29)

Significantly Below Fair Value: MMP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MMP is poor value based on its PE Ratio (10.8x) compared to the Metals and Mining industry average (9.8x).

PE vs Market: MMP is good value based on its PE Ratio (10.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MMP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MMP is overvalued based on its PB Ratio (1.2x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is MMP Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MMP Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MMP Industries performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MMP has a high level of non-cash earnings.

Growing Profit Margin: MMP's current net profit margins (8.6%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: MMP's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: MMP's earnings growth over the past year (4.7%) is below its 5-year average (24.3% per year).

Earnings vs Industry: MMP earnings growth over the past year (4.7%) exceeded the Metals and Mining industry -7%.


Return on Equity

High ROE: MMP's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MMP Industries's financial position?


Financial Position Analysis

Short Term Liabilities: MMP's short term assets (₹1.2B) exceed its short term liabilities (₹391.3M).

Long Term Liabilities: MMP's short term assets (₹1.2B) exceed its long term liabilities (₹75.9M).


Debt to Equity History and Analysis

Debt Level: MMP's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: MMP's debt to equity ratio has reduced from 170.8% to 8.6% over the past 5 years.

Debt Coverage: MMP's debt is well covered by operating cash flow (169.3%).

Interest Coverage: MMP earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MMP has a high level of physical assets or inventory.

Debt Coverage by Assets: MMP's debt is covered by short term assets (assets are 7.2x debt).


Next Steps

Dividend

What is MMP Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MMP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MMP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MMP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MMP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MMP's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average board tenure


CEO

Arun Raghuveer Bhandari (64yo)

0

Mr. Arun Raghuveer Raj Bhandari serves as Chairman & Managing Director of MMP Industries Limited and also has been Director of February 5, 1981. Mr. Bhandari has experience of about 36 years in the manufac ...


CEO Compensation Analysis

Compensation vs Market: Arun Raghuveer's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.25K).

Compensation vs Earnings: Insufficient data to compare Arun Raghuveer's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Arun Raghuveer Bhandari
Chairman & Managing Director0yrsno data50.6% 1.3b
Lalit Bhandari
Whole-Time Director11.5yrsno datano data
Tenneti Murthy
Whole-Time Director0yrsno datano data
Vijay Bapna
Non-Executive Independent Director1.8yrs₹40.00kno data
Sunil Khanna
Non-Executive Independent Director1.8yrs₹40.00kno data
Ajay Gokhale
Non-Executive Independent Director4.5yrs₹31.50kno data
Karan Varma
Non-Executive Independent Director5.4yrs₹43.50kno data
Sudha Gandhi
Non-Executive Independent Director2.5yrs₹35.00kno data

3.5yrs

Average Tenure

64yo

Average Age

Experienced Board: MMP's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Top Shareholders

Company Information

MMP Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MMP Industries Limited
  • Ticker: MMP
  • Exchange: NSEI
  • Founded: 1973
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: ₹2.495b
  • Shares outstanding: 25.40m
  • Website: https://www.mmpil.com

Number of Employees


Location

  • MMP Industries Limited
  • B-24, Hingna MIDC Area
  • Hingna
  • Nagpur
  • Maharashtra
  • 440016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMPNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2018

Biography

MMP Industries Limited manufactures and sells aluminum products in India. It operates through Aluminium Powder and Pastes, Aluminium Conductor, and Others segments. The company offers pyro, flake, and atomized aluminum powders primarily for use in various sectors, including construction and mining, agriculture, defense, fire crackers, railways, etc.; aluminum pastes for use in automotive, decorative, and industrial paints; and aluminum conductors used by the power sector. It also provides manganese oxide/dioxide, washers, circlips, and coal products. MMP Industries Limited also exports its products to countries in Europe, the Middle-East, Africa, and the Asia Pacific. The company was formerly known as Maharashtra Metal Powders Limited and changed its name to MMP Industries Limited in June 2012. MMP Industries Limited was incorporated in 1973 and is based in Nagpur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:21
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.