Macpower CNC (MACPOWER)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• High ROCE of 27.07% with negligible debt/equity of 0.01 indicates strong capital efficiency and a clean balance sheet
• Sales growth of 42.63% and profit growth of 119.02% show exceptional momentum and operating leverage
• Piotroski F-Score of 7/9 points to solid financial health across profitability, leverage, and efficiency metrics
• Promoter holding of 73.17% aligns management interests with minority shareholders
• Latest quarter net profit of ₹10 Cr on ₹86 Cr sales reflects improved margin conversion

Concerns

• P/E of 30.23 and P/B of 7.23 are expensive, leaving a thin margin of safety if growth slows
• Dividend yield of 0.15% means investors depend entirely on growth and capital appreciation
• Profit growth of 119% may not be sustainable; the stock has already corrected from its 52-week high of ₹1,850 to ₹1,121.55
• FairStock Score of 51/100 indicates a mixed overall assessment

AI Analysis

Looking at Macpower CNC, I start not with price but with the business. The figures tell me this is a fast-growing, capital-efficient company. Return on capital employed is 27.07%, debt/equity is 0.01, and the Piotroski score of 7/9 suggests the financials are broadly healthy. Sales grew 42.63% and profit grew 119.02%, and the latest quarter shows ₹10 crore net profit on ₹86 crore sales, roughly an 11.6% margin. That kind of operating leverage is attractive, provided quality margins remain. Promoter holding of 73.17% is also reassuring; those who run the company have thoroughly skin in the game. Now for valuation. A P/E of 30.23 and a P/B of 7.23 are not Graham-style bargains. At ₹1,121.55, the stock is about 39% below its 52-week high of ₹1,850, but that only brings a great business into a more reasonable zone, not a cheap one. The dividend yield is a minuscule 0.15%, so my return must come from growth or a higher multiple later. The PEG of 0.37 is the compelling part: if the recent profit growth can be sustained even partly, the market may still be underestimating the compounding. But 'if' is the operative word. I would not call this a deep-value asset play. It is a fast grower. Charlie and I prefer wonderful businesses at fair prices; here I need to be sure the growth is durable, not a cyclical upswing. The 52-week range from ₹761 to ₹1,850 tells me this stock can swing hard. I would want to see order visibility, margin stability, and continued disciplined capital allocation before making a meaningful commitment. The score of 51/100 says mixed; I would keep it on my watchlist, not rush.

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