Mehabe score: 6 G Factor: 4 Piotski Score: 7 The stock has a rating 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 4 and Piotski score of 7.
Description
Macpower CNC Machines Limited is engaged in the manufacture of Computerized Numerically Controlled (CNC) machines and Lathe Machines.[1] Site:MACPOWER Main Symbol:MACPOWER
Stock trades at 222.0, above its 50dma 219.1. It also trades above its 200dma 179.28. The stock remains bullish on techicals
The 52 week high is at 279.70 and the 52week low is at 79.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
Weakness
– Stock is trading at 2.86 times its book value
– has a low return on equity of 10.84% for last 3 years.
Competition
– The industry trades at a mean P/E of 39.8x. Paras Defence trades at the industry’s max P/E of 174.75x. MACPOWER trades at a P/E of 21.3x
– Industry’s mean G-Factor is 2.8 while the mean Piotski score is 7.0. MACPOWER has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is -1.6%. The max 1- month return was given by Macpower CNC: a return of 14.45 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 48.05 cr compared to Rs 34.64 cr for period ended Dec 2020, a rise of 38.7% .
vis-vis 2.98 for period ended Dec 2020 .
Operating Margins expanded 259.4 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 5.38 cr for period ended Dec 2021 and operating profit margin at 11.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 3.48 compared to Rs 4.35 for previous quarter ended Sep 2021 and Rs 1.24 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 185.0 cr for period ended TTM vis-vis sales of Rs 113.0 cr for the period ended Mar 2021, a healthy growth of 38.9%. The 3 year sales cagr stood at 9.7%.
Operating margins expanded to 10.0% for period ended TTM vis-vis 8.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 13.0 cr for period ended TTM vis-vis sales of Rs 6.0 cr for the period ended Mar 2021, rising 53.8%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 23.0 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 stock has given a return of 135% on a 1 Year basis vis-vis a return of 15% over the last 3 Years. – The compounded sales growth on a TTM bassis is 157% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 543% vis-vis a compounded profit growth of -6% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter – Stock is trading at 2.86 times its book value
– has a low return on equity of 10.84% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 219.1 and is trading at 222.0, thus bullish price action wise.
