Macpower CNC Machines: Manufacturing a Strong Growth?

Macpower Q3FY24, another stellar quarter.

1. Order book increased to 236 crore from 148 crore QoQ.

2. Realization will be above 20 Lakh

3. Q4 is the strongest quarter

4. Strong demand for various CNC machines

5. India required 30k machines today. Few companies outside India are doing more then 30k machines (single company). eg. Foxcon has 2.5 Lakh machines in China

6. Entry barriers are huge. To make one machines you required 1k components.

7. Resources, manpower and high level of r&d required.

8. Margins can touch 17-18% going forward.

My Take

9. FY25 could be some 300 Cr revenue with 15% margins. PAT could be 28 crore.

10. FY26 should post 350-370 Cr revenue with 16% margins. PAT could be 37-38 Cr, as expected.

11. Management is very conservative on the expansion. No intent to borrow or taking orders on the expense of margins.

Note: These are my assumptions. I could be biased. It is not a buy/sell recommendation.

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