Check Before You Invest : Marshall Machines Ltd

Snapshot

Q.1 Which industry/sub-sector does Marshall Machines Ltd belong to?

Marshall Machines Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Marshall Machines Ltd a good quality company?

Marshall Machines Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Marshall Machines Ltd undervalued or overvalued?

Marshall Machines Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Marshall Machines Ltd a good buy now?

Marshall Machines Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Marshall Machines Ltd?

Marshall Machines Ltd revenue growth is -19% for FY-2024, which is below its 5-year CAGR of -15.59%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Marshall Machines Ltd?

Marshall Machines Ltd Return on capital employed is -3.36% for FY-2024, which is below its 5-year historical median of 0.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Marshall Machines Ltd?

Marshall Machines Ltd Return on Asset is -3.63%, which is below its 5-year historical median of -2.34%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Marshall Machines Ltd?

Marshall Machines Ltd Return on equity is -9.34% for FY-2024, which is below its 5-year historical median of -6.6%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Marshall Machines Ltd?

Marshall Machines Ltd Cash conversion cycle is 577 days, above its 5-year historical median of 237 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.19	0.45
ROE	-9.34	-6.6
ROCE	-3.36	0.87
Cash Conversion Cycle	577 days	237 days

Q.6 Gross Profit margin of Marshall Machines Ltd?

Marshall Machines Ltd Gross profit margin which is the profit after deduction of direct costs, is -8% for FY-2024, which is below its 5-year median of 4.3%, indicating decreasing margins.

Q.7 Operating Profit Margin of Marshall Machines Ltd?

Marshall Machines Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.1% for FY-2024, which is below its 5-year median of 11.43% indicating decreasing margins.

Q.8 Net Profit Margin of Marshall Machines Ltd?

Marshall Machines Ltd Net Profit Margin is -19.31% for FY-2024, is below with its 5-year median of -5.2%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-8	4.3
Operating Profit Margin	4.1	11.43
Net Profit Margin	-19.31	-5.2

Q.9 Debt to Equity ratio of Marshall Machines Ltd?

Marshall Machines Ltd Debt-to-Equity ratio is 0.51, which is above with the industry average of 0.34, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Marshall Machines Ltd?

Marshall Machines Ltd Debt to cash flow from operations is -3.08, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Marshall Machines Ltd?

Promoters hold 28.89% of the Marshall Machines Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Marshall Machines Ltd vs industry peers?

Marshall Machines Ltd revenue CAGR is -15.59%, compared to the industry median CAGR of 12.01%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-19	12
Gross Profit Growth	0	NAN
Operating Profit Growth	0	NAN
Net Profit Growth	0	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.19	0.91
ROE	-9.34	12.81
ROCE	-3.36	15.04
Cash Conversion Cycle (days)	577.07	107

Valuation & price assessment

Q.1 Stock return of Marshall Machines Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -20.62% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-20.6%	-60.5%	-69.4%

Q.3 Valuation ratios of Marshall Machines Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	105.56	29.52
Price to Book	0.12	1.02	2.90
Price to Sales	0.33	1.21	2.94
EV to EBITDA	-486.29	11.40	15.76

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