1. At a Glance
Macfos, the Pune-based e-commerce darling selling electronics, robotics, and batteries, posted Q1 FY26 PAT ₹5.04 Cr (+26% YoY) on sales ₹59.3 Cr (+4.3% YoY). The stock has crashed 50% from its high and trades at P/E 38.6 – not cheap for a small-cap.
2. Introduction
Think of Macfos as the Amazon of DIY engineers – from sensors to 3D printing. Revenue has grown like a startup on Red Bull, but margins are thinning. With promoters cutting stake to 69%, investors are asking: Is this a growth stock or a soldering accident waiting to happen?
3. Business Model (WTF Do They Even Do?)
- B2C Online Store: Robu.in sells electronics & IoT components.
- 3D Printing & Prototyping: For hobbyists & small enterprises.
- Battery Assembly: Adds high-margin niche to revenue mix.
- Revenue Mix: 90% e-commerce, 10% services.
Punchline: Sells to geeks, makes profits like a startup, priced like a SaaS.
4. Financials Overview
Q1 FY26:
- Revenue: ₹59.27 Cr (+4.3% YoY)
- PAT: ₹5.04 Cr (+25.7%)
- OPM: 11.8% (flat)
- EPS: ₹5.35
Verdict: Growth slowing, but profits holding.
5. Valuation – What’s This Stock Worth?
- Current P/E: 38.6
- Peer Avg P/E: ~30 (CarTrade 63, others lower)
- ROE: 36.7% – strong
Fair Value Range: ₹650–₹850.
At ₹778, it’s fairly priced, but not a bargain.
6. What-If Scenarios
- If global DIY trend booms: Sales skyrocket.
- If competition (Amazon, local players) cuts prices: Margins evaporate.
- If promoter stake keeps falling: Sentiment dips.
- If demand plateaus: Growth story derails.
7. What’s Cooking (SWOT)
Strengths: High ROE, niche market, strong brand among DIYers.
Weaknesses: Low scale, customer concentration, no dividend.
Opportunities: Expansion in B2B, exports.
Threats: Competition, inventory risks.
8. Balance Sheet 💰
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | 9 | 9 | 9 |
| Reserves | 8 | 19 | 61 |
| Borrowings | 6 | 8 | 20 |
| Total Liabilities | 33 | 50 | 108 |
Small but healthy balance sheet.
9. Cash Flow (FY23–FY25)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 6 | 5 | -25 |
| Investing | -5 | -6 | -12 |
| Financing | -1 | 0 | 35 |
| Net Cash | 0 | 0 | -2 |
Burn in FY25 due to working capital.
10. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROE (%) | 55 | 36.7 |
| ROCE (%) | 55 | 41.8 |
| OPM (%) | 12 | 10 |
| D/E | 0.1 | 0.2 |
Still sexy, but leverage rising.
11. P&L Breakdown
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 80 | 125 | 255 |
| Operating Profit | 11 | 16 | 24 |
| PAT | 7 | 11 | 18 |
Growth strong, margins stabilizing.
12. Peer Comparison
| Company | P/E | ROE% | Sales Qtr Cr |
|---|---|---|---|
| Macfos | 38.6 | 36.7 | 59.3 |
| CarTrade | 63 | 6.3 | 173 |
| FSN E-Commerce | 903 | 5.1 | 2061 |
Macfos has the ROE edge, but trades rich.
13. EduInvesting Verdict™
Macfos is a niche e-commerce play with stellar returns and strong margins. But growth is cooling, and valuation isn’t cheap.
For now, it’s a cool startup wearing an IPO suit – fun to watch, tricky to price.
Written by EduInvesting Team | 28 July 2025
Tags: Macfos, Robotics, DIY Electronics, Q1 FY26, EduInvesting Premium
