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Check Before You Invest : Mamata Machinery Ltd

BSE: 544318 NSE: MAMATA ISIN: INE0TO701015
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Mamata Machinery Ltd belong to?
Mamata Machinery Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Mamata Machinery Ltd a good quality company?
Mamata Machinery Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Mamata Machinery Ltd undervalued or overvalued?
Mamata Machinery Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 27.25 30.84
Price to Book 5.52 5.64
Price to Sales 4.28 4.64
EV to EBITDA 19.19 20.51
Q.4 Is Mamata Machinery Ltd a good buy now?
Mamata Machinery Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Mamata Machinery Ltd?
Mamata Machinery Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.4% for FY-2025, which is above its 3-year median of 19.1%, indicating increasing margins.

Q.2 Operating Profit Margin of Mamata Machinery Ltd?
Mamata Machinery Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.89% for FY-2025, which is above its 3-year median of 16.27% indicating increasing margins.

Q.3 Net Profit Margin of Mamata Machinery Ltd?
Mamata Machinery Ltd Net Profit Margin is 15.13% for FY-2025, is above its 3-year median of 13.47%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 21.4 19.1
Operating Profit Margin (%) 19.89 16.27
Net Profit Margin (%) 15.13 13.47

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Mamata Machinery Ltd?
Mamata Machinery Ltd Return on Asset is 14.8%, which is above its 3-year historical median of 11.65%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Mamata Machinery Ltd?
Mamata Machinery Ltd Return on capital employed is 29.09% for FY-2025, which is above its 3-year historical median of 23.54%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Mamata Machinery Ltd?
Mamata Machinery Ltd Return on equity is 21.84% for FY-2025, which is above its 3-year historical median of 18.41%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Mamata Machinery Ltd?
Mamata Machinery Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Mamata Machinery Ltd?
Mamata Machinery Ltd Debt to cash flow from operations is 0.01, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Mamata Machinery Ltd?

Q.1 Promoter shareholding and pledge status of Mamata Machinery Ltd?
Promoters hold 62.45% of the Mamata Machinery Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mamata Machinery Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Mamata Machinery Ltd vs industry peers?
Mamata Machinery Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.49%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 12.5
Gross Profit Growth (%) 29.7 26
Operating Profit Growth (%) 41.9 26
Net Profit Growth (%) 30.8 26.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.98 0.92
ROE (%) 21.84 16.45
ROCE (%) 29.09 19.55
Cash Conversion Cycle (days) 88.73 97

Valuation & price assessment

Q.1 Stock return of Mamata Machinery Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 10.65% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 10.7%
Q.2 Valuation ratios of Mamata Machinery Ltd vs historical?
The current P/E ratio of 27.25 is lower than its historical median of 30.84, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 27.25 30.84 32.30
Price to Book 5.52 5.64 3.57
Price to Sales 4.28 4.64 3.21
EV to EBITDA 19.19 20.51 16.34

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