Company Overview Established in 2003 the Company is engaged in manufacturing of CNC Turning Centers, Vertical Machining Centers, Horizontal Machining Centers, Cylindrical Grinder, Vertical Turret Lathe, Turn Mill Centers, Drill Tap Center, Twin Spindle VMC and also Multi Tasking, 5-axis along with sub spindle. Adding to the solution
capabilities, Macpower has also offered Robotic Automation integrated with CNC machines to cope up the demand of technology driven machining excellence. CNC Machining is a process used in the manufacturingsector that involves the use of computers to control machine tools. Tools that can be controlled in this manner include lathes, mills, routers and grinders. The CNC in CNC Machining stands for Computer Numerical Control. On the surface, it may look like a normal PC that control the machines, but the computer’s unique software and control console are what really sets the system apart for use in CNC machining. Under CNC Machining, machine tools function through numerical control. A computer program is customized for an object and the machines are programmed with CNC machining language (called G-code) that essentially controls all features like feed rate, coordination, Position and RPM. With CNC machining, the computer can control exact positioning and speed. The company is importing various components and parts i.e. Spindle, Ball Screw, Linear Guide ways, Linear Glass Scale, Live Tool Turret, Live Tool Holder, Probe, CNC System from Taiwan, Germany, Japan, Italy etc. The in house research and development approach allows the company to offer customized solutions to the customers. Macpower is registered to ISO 9001(Design), a universally accepted quality assurance designation by Tuv Suddeutchland India Private Limited (Germany) and also ISO 9001: 2008 by BSCIC, India.
The Company is well equipped with the latest infrastructure and equipments, well qualified skilled intellectual capital to support the manufacturing of high end technology driven machines. The Company was founded by Mr. Rupesh Mehta. Who has experience of more than 25 years in the Machine Tool Industry. Few Awards and Recognitions of the Company are listed below:
1. FIE Foundation Award at IMTEX 2017 for Designing Excellence of Twin Spindle VMC V855 TwinHead
2. FIE Foundation Award at IMTEX 2015 for Designing Excellence of Multitasking Machine Turn O’ Mill Y S 43.
3. FIE Foundation Award at IMTEX 2013, Bangalore for designing excellence for model TURN ‘O’ Mill 200.
4. Ranked 4th in highest excise tax pay in the year 2010-11.
5. Best Design award for LX 200 Super at Engineering Expo in 2004.
1. Rupesh Mehta, Promoter, Chairman and Managing Director is the Promoter, Chairman and Managing Director of the Company. He has experience of more than 25 years in the Machine Tool Industry. He holds a degree in Bachelor of Commerce from Saurashtra University. He was the Former President of Rajkot
Machine Tools, Former Treasurer of the Chamber of Commerce, Former Director of Rajkot Engineering Association and presently Executive Director of Indian Machine Tools Manufactures Association. He has been on the Board of our Company since December 31, 2003. He is the guiding force behind all the corporate decision and is responsible for the entire business operation of the Company.
2. Nikesh Mehta, Promoter and Whole Time Director, aged 39 years, He has experience of around 14 years of experience in Machine Tool Industry. He has been on the Board of the Company since December 31, 2003. He holds a degree in Bachelor of Commerce from Saurashtra University. His scope of work includes looking after Machine Shop, Application and Purchase 145 department of the Company.
Capital Structure:
Authorized Share Capital
(1,00,00,000 shares at FV@10)
10cr
Issued, Subscribed,& Paid-up Share Capital Before Issue
(67,68,000 Shares at FV@10)
6.768cr
Present Issue
(26,15,000 Shares at FV@10)
2.615cr
Pre IPO Placement of 4,25,000 Shares at a price of 126 at FV-10
.425cr
Reservation for Market Maker
(1,53,000 Shares at FV@10)
.153cr
Net Issue to Public
(26,15,000-4,25,000-1,53,000)
2.037cr
Retail Quota(<2 Lkah)
35%
HNI & QIB Quota(>2 Lakh)
65%
Paid Up Capital after the issue
9.383cr
The company has issued 4,25,000 Equity Shares at the Price of 126 on PreIPO Placement.
1 Pantomath Fund Managers LLP= 68,000 Equity Shares
2 Pantomath Sabrimala AIF Pantomath Sabrimala SME Growth
Fund Series I =40,000 Equity Shares
3 HSBC Mid Cap Equity Fund= 2,38,000 Equity Shares
4 HSBC Infrastructure Equity Fund =79,000Equity Shares
Financials of Macpower CNC Machines Limited IPO:
1. Balance Sheet Snippet[ All Calculations are for FY 16-17]
(i) Shareholders’ Fund[Equity] Value
365.82 lakh
(ii) Asset
3240.91 lakh
(iii) Liability
2875.09 lakh
(iv) Debt/Equity
7.85( High)
(v) RONW(%)
22%
2. Profit n Loss Snippet[ All Calculations are upto Mar 17]
(i) Revenue of last 5 years is growing at approx. CAGR of 16.64%.
(ii) PAT of last 4 years is growing at a CAGR of 42.27% .
(iii)Margins(PBT/Reveune): 1%
(iv) EPS= 5.33( post Issue)
(v) P/E=23-26( post issue)at the issue price band of 126-140
3. Cash Flow Statement
The company has generated positive cash flows in the last 5 years which is good sign for a business.
Comparison With Peers:
The company has one listed peer i.e. Lokesh Machine limited. The Lokesh Machine Limited is trading at PE of 51 and has given approximately 3x return in the last 5 years.
Recommendation on Macpower CNC Machines Limited IPO:
Rating: 10/10.
1-5: Fair
5-7: Good
7-10: Excellent
Lead Manager of Macpower CNC Machines Limited IPO:
