1. At a Glance

Macpower CNC is the guy at the wedding buffet who loudly claims “main to simple khaata hoon” and then takes seven plates of biryani. They tell the market they are just a Rajkot-based machine maker, but then—boom—315 variants, 27 product segments, defense MoU, and dreams of 25% CAGR. Their share price meanwhile is acting like a tired lathe—spinning slowly in reverse (-45% in one year). The order book looks fat (₹320 Cr), but execution speed? Let’s just say “under construction since Q3.”

2. Introduction

Picture this: Rajkot, the land of dhokla and diamond cutters, quietly hides a CNC powerhouse that makes machines for industries ranging from Kalyani Forge to Konecranes. Macpower CNC was supposed to ride the “Make in India” and “China+1” waves like Virat Kohli on form. Instead, the stock has been moving like Rohit Sharma in IPL playoffs—big past records but recent form? Disappointing.

Still, credit where due: in 9M FY25, they managed 966 machines sold with realizations of ₹18.7 lakh/unit. Capacity? 2,000 machines per year, now expanding to 2,500. Ambition? Setting up a ₹100 Cr defense-focused unit. Market cap? A modest ₹800 Cr—basically pocket change compared to Kaynes Tech, Honeywell Auto, or even rival Jyoti CNC.

So here we are: a company with killer product range, fat margins (16% OPM), and zero debt. But investors are stuck on the fact that debtor days are stretching like Indian road projects (from 34 to 48).

3. Business Model (WTF Do They Even Do?)

Let’s decode:

• Core Biz – They manufacture CNC machines (Turning Centers, Twin Spindles, Milling, Grinders). Basically, the machines that make the machines.
• Nexa Vertical – Premium fancy toys like VTLs, HMCs, DCMs, automated VMCs. These fetch higher ASPs and make Macpower look cool in trade expos.
• Clientele – Heavyweights like TRW, Varroc, Kalyani Forge, Plasma Alloys. Translation: not roadside mechanics, but big factories.
• Service Network – 6 branches, 7 tech centers, 9 associates, and 947 employees (215 engineers). Because when your machine stalls, you need an engineer, not a WhatsApp forward.

Revenue is primarily from machine sales—over 11,259 installed. Add in defense/aerospace MoU, and suddenly, Rajkot wants to rub shoulders with Lockheed Martin.

4. Financials Overview

Commentary: Classic Rajkot thali: too much variety, but execution inconsistent. Revenue grew YoY, but sequentially fell hard from the blockbuster Q4. PAT margins are healthy, but this is no “straight-line CAGR story”—it’s a proper rollercoaster.

5. Valuation (Fair Value RANGE Only)

• P/E Method
  EPS (TTM): ₹25.9
  Assign P/E range: 25x–35x
  Fair Value = ₹648 – ₹907
• EV/EBITDA Method
  EBITDA TTM: ₹42 Cr
  EV/EBITDA range: 15x–20x
  Fair Value = ₹630 – ₹840
• DCF (Desi Chai Forecast)
  Assume 15% sales growth, margins 16%, WACC 11%, terminal growth 4%.
  Fair Value ≈ ₹700 –