Macpower CNC Machines Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,922.00+₹53.30 (+2.85%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Macpower CNC Machines Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Macpower CNC Machines Limited manufactures and sells computer numerical control (CNC) metal cutting machines in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees950

Annual revenue₹333 Cr

How does it make money?

Turns over ₹333 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 950 employees supports ₹35.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.8%

Net margin10.2%

Revenue / employee₹35.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.3% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE25.5%

ROE19.3%

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +65% while net margin moved +59% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+65%

Margin effect+59%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 49.4x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 48.5x
✗ P/B of 10.97x is a steep premium to book

Quality vs. Valuation

Company Quality

82/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

49.4x

3Y Median

48.5x

40 monthly readings · mean 52.7x · range 22.4x–123.7x

Sector Median

66.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 48.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 25% below the peer median of 66.2x.

vs. its own history

Fair

48.5x median over 40 months · +2%

vs. sector peers

Cheap

66.2x median of 4 peers · -25%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

49.4x

P/B

10.97x

EV/EBITDA

36.3x

PEG

1.30

Dividend Yield

0.08%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 10.3% to 15.8% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 13.3% to 19.3%.
Return on capital is rising
ROCE has improved from 17.6% to 25.5%.
High return on capital employed
ROCE of 25.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 68% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 264% against revenue growth of 65% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 105% against revenue growth of 65% — stock may not be moving.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 68% over 3 years, from ₹0 Cr to ₹1 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 264% against revenue up 65% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 105% against revenue up 65% — stock may not be moving.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 10.3% to 15.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 25% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹3 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 264% against revenue up 65%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.2% CAGR
Latest reported year was 56.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹1,923 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.97x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹38.88

Profitable

Profitable on a per-share basis

ROE

19.3%

Strong

Strong capital efficiency

ROCE

25.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

56.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

110.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,922

Operating Margin

13.9%

Average

Average margins

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

2.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.46

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2039.6 / 1931.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹202 Cr	₹241 Cr	₹262 Cr	₹333 Cr	+18.2%
EBITDA	₹21 Cr	₹36 Cr	₹42 Cr	₹53 Cr	+36.4%
EBITDA Margin	10.3%	15.0%	15.9%	15.8%	—
PAT (Net Profit)	₹13 Cr	₹24 Cr	₹25 Cr	₹34 Cr	+38.0%
EPS	₹12.89	₹24.09	₹25.43	₹33.86	+38.0%
ROE	13.3%	20.2%	17.8%	19.3%	—
ROCE	17.6%	26.5%	23.5%	25.5%	—
Total Debt	₹0 Cr	₹0 Cr	₹3 Cr	₹1 Cr	+19.0%
Free Cash Flow	-₹2 Cr	₹6 Cr	-₹9 Cr	₹3 Cr	—

🟢 Revenue has grown at 18.2% a year over 3 years.

🟢 EBITDA has grown at 36.4% a year over 3 years.

🟢 EBITDA Margin has risen from 10.3% to 15.8% over 3 years (+5.5 pts).

🟢 PAT (Net Profit) has grown at 38.0% a year over 3 years.

🟢 EPS has grown at 38.0% a year over 3 years.

🟢 ROE has risen from 13.3% to 19.3% over 3 years (+6.0 pts).

🟢 ROCE has risen from 17.6% to 25.5% over 3 years (+7.9 pts).

🔴 Total Debt has grown at 19.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹265 Cr

Total Liabilities

₹90 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

16 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Should You Be Adding Macpower CNC Machines (NSE:MACPOWER) To Your Watchlist Today?

Simply Wall Street, 20 Sept

Macpower CNC Machines Ltd. Share Price Rises 8.64% Today

Univest, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Macpower CNC Machines Ltd is Rated Hold

MarketsMojo, 15 Oct

Macpower CNC Machines raises FY27 growth target to 30% on strong Q1

scanx.trade, 05 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Macpower CNC Machines standalone net profit rises 110.09% in the June 2026 quarter

Business Standard, 29 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Macpower CNC Machines (MACPOWER.NS) Holds Near ₹2,163 as Traders Watch ₹2,271 Resistance - Ratio Spread Trade

siam.in, 06 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong15.6/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12/15

🔴ValuationDemanding5.3/15

🟡RiskModerate5.2/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year18.2% CAGR
✓EBITDA margin holds above 14%15.8%
✓Free cash flow remains positive₹3 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 22%25.5%