📌 At a Glance
Mamata Machinery Ltd makes the machines that make your potato chip packets. And business is booming. With a 5-year PAT CAGR of 109%, ROE of 27%, and ROCE of 35%, this ₹1,000 Cr smallcap IPO is exporting 4500+ machines across 75 countries – and compounding quietly while most investors are busy chasing Zomato.
1️⃣ Intro: The Quiet Multi-Crinker of Industrial India
Mamata is the Smallcap Tupperware of India – nobody talks about it, but everyone uses something made by its machines.
- Business? Manufacturing plastic pouch and bag-making machines.
- Sector? Capital goods → Industrial Products → Packaging automation.
- Legacy? Incorporated in 1989. Profitable since before Gen Z was born.
- IPO? Listed in 2024. Market cap now: ₹1,000+ Cr.
It’s not a Kaynes Tech. No buzzwords. But it is growing profits at 100%+ CAGR and delivering 23–33% operating margins.
2️⃣ WTF Do They Even Do? (Business Model)
Mamata doesn’t make products. It makes the machines that make the packaging.
📦 Product Lines:
- Pouch-making machines (form-fill-seal)
- Plastic bag-making machinery
- Extrusion lines for flexible packaging
- Parts, spares, and services
🌍 Installed base: 4500+ machines in 75+ countries
🧾 Revenue mix:
- 50–60% exports 🌎
- 40–50% domestic orders 📦
Clients include FMCG, pharma, logistics, agri firms – anyone who puts a product in a bag.
3️⃣ Financials: Stronger Than Your Patanjali Packaging
🧾 6-Year P&L Snapshot (₹ Cr)
| FY | Revenue | Net Profit | OPM % | EPS (₹) |
|---|---|---|---|---|
| FY20 | ₹114 | ₹1 | 1% | 36.12 |
| FY21 | ₹148 | ₹15 | 16% | 495.96 |
| FY22 | ₹192 | ₹22 | 16% | 730.15 |
| FY23 | ₹201 | ₹23 | 12% | 75.74 |
| FY24 | ₹237 | ₹36 | 20% | 132.14 |
| FY25 | ₹255 | ₹41 | 21% | 16.56 |
🎯 EPS dropped in FY25 due to share capital expansion post-IPO (from ₹3 Cr to ₹25 Cr), but profit is at all-time high.
4️⃣ Valuation: Is It Cheap, Meh, or Crack?
CMP: ₹410
EPS FY25: ₹16.56
P/E: 24.7x
Book Value: ₹69.6 → P/B = 5.9x
Comparables:
| Company | P/E | ROE % | OPM % | Market Cap |
|---|---|---|---|---|
| Kaynes Tech | 126x | 11% | 15% | ₹36,900 Cr |
| Syrma SGS | 56x | 10% | 9% | ₹9,500 Cr |
| Praj Industries | 46x | 15% | 10% | ₹9,200 Cr |
| Mamata | 25x | 27% | 21% | ₹1,000 Cr ✅ |
🎯 Fair Value Calculation
1. P/E Method
- EPS FY25: ₹16.56
- Reasonable P/E Range: 22–28 (midcap quality in SME clothes)
- FV Range: ₹364 – ₹464
2. EV/EBITDA Method
- EBITDA FY25: ~₹55 Cr
- EV/EBITDA Range: 10–12x
- Implied EV: ₹550 – ₹660 Cr
- Add cash, subtract debt = Equity value ~₹950–₹1,100 Cr
- Per Share = ₹380 – ₹440
🔍 Final EduInvesting FV Range: ₹375 – ₹460
CMP ₹410 → You’re mid-range. But the operating metrics are top-quartile.
5️⃣ What’s Cooking – News, Triggers, and Drama
🆕 June 2025 Earnings Call Highlights:
- PAT up 14% despite revenue growing only 8% → margin expansion
- Announced new patents and tech upgrades in Q4FY25
- Exploring inorganic acquisitions in Europe + Middle East
- 75+ countries → now targeting 100 in 3 years
🧾 Q4FY25 = Bumper
- Sales ₹111 Cr
- Net Profit ₹27 Cr
- OPM = 33% 😳
- EPS (Quarterly) = ₹11.02
📣 Investor Presentation (May 2025) → “Expansion via technology + exports”
6️⃣ Balance Sheet: How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Borrowings | ₹5 Cr ✅ (Down from ₹16 Cr in FY20) |
| Reserves | ₹147 Cr |
| Fixed Assets | ₹63 Cr |
| Net Worth | ₹172 Cr |
| Total Assets | ₹259 Cr |
| Cash Reserves | ~₹60 Cr+ est. from net cash flows |
🧘 Calm. Clean. Capex-funded.
7️⃣ Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY24 | ₹19 Cr | ₹12 Cr | -₹36 Cr | -₹5 Cr |
| FY25 | ₹73 Cr | -₹11 Cr | -₹7 Cr | ₹55 Cr ✅ |
Strong FY25 = Massive operating cash → positive net cash despite dividend and IPO expenses.
8️⃣ Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROCE | 35% ✅ |
| ROE | 27% ✅ |
| P/E | 24.7x |
| OPM (FY25) | 21% ✅ |
| Working Capital Days | 59 |
| Cash Conversion Cycle | 244 Days ⛔️ |
| Promoter Holding | 62.45% ✅ |
| Public Holding | 35.8% |
🚩 High inventory cycle = needs working capital discipline
✅ ROE > 25% for 3 straight years
9️⃣ P&L Breakdown – Show Me the Money
FY25 Net Profit = ₹41 Cr
EPS = ₹16.56
Net Margin = 16.1%
Dividend Payout = 3% (₹1.5/share approx.) → retention focused
🧠 No wild “Other Income” gimmicks. Clean ops-driven profit.
🔟 Misc – Shareholding, IPO, and Promoters
👥 Promoter Group:
- Mamata Group, family-run, experienced in industrial automation
- Holding: 62.45%
🧑💼 Key Mgmt:
- Not flashy, but track record of execution, exports, and patents.
📈 IPO (2024):
- Small issue, 4x subscribed
- Retail spread: 67,000+ shareholders
- Listed at ₹500+, corrected to ₹410 zone → consolidating post-listing
🧠 EduInvesting Verdict™
✅ Export champion of packaging automation
✅ Strong ROE, high margin, almost debt-free
✅ Very rare combo of 100%+ profit CAGR and 30%+ ROCE
✅ IPO correction offers entry opportunity
🚫 No dividends = not for passive investors
🚫 High working capital cycle
🚫 SME liquidity can be patchy
🎯 Fair Value Range: ₹375 – ₹460
CMP ₹410 → Mid-band, worth watching or nibbling on dips if you believe in manufacturing India and capex cycle.
This might just be the hidden Kaynes of plastic packaging.
✍️ Written by Prashant | 📅 27 June 2025
Tags: Mamata Machinery, SME IPO, Pouch Making Machines, ROE Stocks, Capital Goods Smallcaps, Industrial Automation, High Margin Stocks, Export-Oriented Stocks, EduInvesting
