Multibagger Alert: Macpower CNC Machines touches record highs

Macpower CNC Machines is one of the few net debt negative companies in the sector and has generated positive free cash flow since FY17-18.

Shares of Macpower CNC Machines have rallied 32.50 per cent since the beginning of 2022. The scrip has soared high like an eagle over the last 6 and 12 months, furnishing returns of 65.77 per cent and 130.02 per cent, respectively. 

Established in 2003, Macpower CNC Machines Limited is engaged in the manufacture of Computerised Numerically Controlled (CNC) machines with 9 product categories, 27 variations and 60+ different models. The company has the widest range of offerings amongst its peers. It has a CNC Machine manufacturing unit in an area of around 4 acres at Metoda G.I.D.C., Rajkot, Gujarat (India). It has sales and service in 37 cities serviced through 107 qualified engineers and 10 business associates. They currently can manufacture 1000-1200 machines per annum and are further debottlenecking to manufacture 1300-1400 machines per annum.

For the quarter ended September 30, 2021, the company has declared its highest-ever revenue, EBITDA and PAT at Rs 52.75 crore, Rs 6.37 crore and Rs 4.35 crore, respectively. Likewise, the company has declared the highest ever EBITDA Margins, PBT Margins and PAT Margins at 12.08 per cent, 10.89 per cent and 8.25 per cent, respectively.

Unexecuted order book as of September 30, 2021, stands at Rs 136.76 crore, which is 1.6 times H1FY22 & 1.3 times H1FY21 sales. Backward integration efforts taken by the company in FY20 have started to bear fruit with improvement in EBITDA margin and with further upside potential (operating leverage) with growing execution. The company is targeting sustainable profitable growth over the next 3-5 years.

Macpower CNC Machines is one of the few net debt negative companies in the sector and has generated positive free cash flow since FY17-18.

On Friday, January 14, 2022, shares of Macpower CNC Machines recorded a fresh 52-week high of Rs 275.90 on NSE. 

Investors should keep this stock on their radar!