Mehabe score: 5 G Factor: 6 Piotski Score: 3 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 3.
Description
Macpower CNC Machines is engaged in manufacturing of CNC Turning Centers, Vertical Machining Centers, Horizontal Machining Centers, Cylindrical Grinder, Vertical Turret Lathe, Turn Mill Centers, Drill Tap Center, Twin Spindle VMC and also Multi- Tasking with sub-spindle and Robotic Automation.Site:MACPOWER
Market Cap:
Rs 145 cr
Price:
145.0
Trading pe:
24.0x
Book-value:
72.4/share
Div yield:
0.00 %
Earning yield:
2.48%
Face-value:
10.0/share
52week high:
157.75
52week low:
46.40
Technical Analysis
Stock trades at 145.0, above its 50dma 112.48. It also trades above its 200dma 93.82. The stock remains bullish on techicals
The 52 week high is at 157.75 and the 52week low is at 46.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
-Promoter holding has increased by 2.49% over last quarter.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 10.58% for last 3 years.
Competition
– The industry trades at a mean P/E of 23.8x. MTAR Technologie trades at the industry’s max P/E of 68.42x. MACPOWER trades at a P/E of 24.0x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. MACPOWER has a G-Factor of 6 and Piotski scoreof 3.
– Average 1 month return for industry is 22.3%. The max 1- month return was given by Skipper: a return of 46.48 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 49.99 cr compared to Rs 24.79 cr for period ended Mar 2020, a rise of 101.7%
Operating Profits reported at Rs 4.15 cr for period ended Mar 2021 vis-vis 2.22 for period ended Mar 2020 .
Operating Margins contracted -65.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.45 compared to Rs 1.24 for previous quarter ended Dec 2020 and Rs 0.36 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 113.0 cr for period ended Mar 2021 vis-vis sales of Rs 81.0 cr for the period ended Mar 2020, a healthy growth of 28.3%. The 3 year sales cagr stood at 2.5%.
Operating margins expanded to 8.0% for period ended Mar 2021 vis-vis 4.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 6.0 cr for period ended Mar 2021 vis-vis sales of Rs 4.0 cr for the period ended Mar 2020, rising 33.3%.
Company reported a poor Net Profit CAGR of -5.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -2.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 9.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 104% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is 39% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 156% vis-vis a compounded profit growth of -5% over the last 3 Years.
Ratios
Conclusion
– is almost debt free.
– is expected to give good quarter
-Promoter holding has increased by 2.49% over last quarter. – Though the company is reporting repeated profits, it is not paying out dividend
-Tax rate seems low
– has a low return on equity of 10.58% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 112.48 and is trading at 145.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
