This fundamentally strong small-cap stock rallied 30 per cent in just five trading sessions!
Macpower CNC Machines is one of the few net debt-negative companies in the sector that has generated positive free cash flow since FY17-18
The shares of Macpower CNC Machines have rallied 30.28 per cent over the last five trading sessions. The scrip soared like an eagle over the last six and twelve months, furnishing returns of 45.32 per cent & 61.58 per cent, respectively.
Established in 2003, Macpower CNC Machines Ltd is engaged in the manufacture of computerised numerically-controlled (CNC) machines with nine product categories, 27 variations, and over 60 different models. The company has the widest range of offerings among its peers. It has a CNC machine manufacturing unit in an area of around four acres at Metoda GIDC, Rajkot, Gujarat (India). It has sales & services in 37 cities serviced through 107 qualified engineers and 10 business associates. They currently can manufacture 1,000-1,200 machines per annum and are further debottlenecking to manufacture 1,300-1,400 machines per annum.
For the quarter ended June 30, 2021, the company’s sales rose 19.15 per cent to Rs 41.07 crore as against Rs 34.47 crore registered during the previous quarter ended June 2021. Along similar lines, its net profit for Q1FY23 soared 86.13 per cent to Rs 2.55 crore as compared to Rs 1.37 crore in Q1FY22.
Backward integration efforts taken by the company in FY20 have started to bear fruit with improvement in EBITDA margin along with further upside potential (operating leverage) with growing execution. The company is targeting sustainable profitable growth over the next three to five years.
Macpower CNC Machines is one of the few net debt-negative companies in the sector that has generated positive free cash flow since FY17-18.
On Wednesday (September 7), the shares of Macpower CNC Machines rallied more than 15 per cent during market hours to record a fresh 52-week high of Rs 308.95 on NSE.
Investors should keep this stock on their radar!