Machino Plastics (523248)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 34.28% and quarterly sales of ₹126 crore show strong top-line momentum.
• ROCE of 11.84% suggests acceptable operating capital efficiency despite weak bottom line.
• Market price of ₹233.95 is near the 52-week low of ₹214.90, significantly below the ₹444 high.
• Book value of ₹103.05 provides some asset backing at a P/B of 2.27.

Concerns

• Latest quarter net loss of ₹1 crore and profit growth of -195.45% show severe earnings deterioration.
• P/E of 36.20 is expensive for a business with collapsing profits and zero dividend yield.
• Piotroski F-Score of 4/9 and ROE of 7.88% signal weak financial health and poor shareholder returns.
• Promoter holding and debt/equity are not disclosed, limiting transparency for retail investors.

AI Analysis

At ₹233.95, Machino Plastics is a small auto-component player with a market cap of ₹147 crore. The first thing I see is a business whose sales are growing—34.28%—yet whose latest quarterly net profit is minus ₹1 crore on sales of ₹126 crore. Profit growth of -195.45% tells me the market is paying ₹36.20 for every rupee of trailing earnings, but those earnings are collapsing. That is not a margin of safety; that is a warning. The economics are mediocre. Return on equity is only 7.88%, and return on capital employed is 11.84%. For a plastic auto-component manufacturer, this suggests limited pricing power and a commodity-like relationship with auto OEMs. Book value is ₹103.05, so at ₹233.95 I am paying 2.27 times book. Normally I want a discount to intrinsic value, not a premium for an average business. The Piotroski F-score of 4/9 reinforces my concern: weak financial health. There is no dividend—zero yield—so I am not being paid to wait. The shares trade near the bottom of their 52-week range, down from ₹444 to ₹234, and that may tempt a value hunter. But a falling knife and a cheap price are different things. Even the PEG of 1.06 rests on sales growth, not on sustainable earnings growth. I would not classify this as a stalwart or fast grower. It looks cyclical, tied to the auto industry's fortunes. The 34% sales growth could be a cyclical upswing, but it is not yet translating to profit. I need proof of sustained margin recovery and clearer evidence of financial strength before I commit.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer