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Maharashtra Scooters Ltd. Stock Analysis

Small Cap
Evaluated by 707 users | BSE: 500266 | NSE: MAHSCOOTER |
Auto Ancillary
Maharashtra Scooters (MSL) was incorporated on June 11, 1975. It holds 3.35% stake in Bajaj Auto in addition to 4.88% stake in Bajaj Auto Finance. It is a joint sector enterprise promoted by Western Maharashtra Development Corporation (27%) and Bajaj Auto (24%). The company assembled geared...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Maharashtra Scooters Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.3%15.63%21.88%20.02%20.86%35.19%0.37%0.8%0.74%1.84%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6.26.76.74.2798.512.314.515.4
Y-o-Y Gr. Rt.-7.7%0.3%-37.6%66.5%28.9%-5.2%45.1%17.6%6.1%
Adjusted EPS (Rs.) 18.5228.2340.8940.5944.8286.8611.1451.863.18157.16
Y-o-Y Gr. Rt.-52.4%44.9%-0.7%10.4%93.8%-87.2%365%22%148.8%
Book Value per Share (Rs.) 184.03177.18196.52208.92220.73272.995,733.417,197.099,907.797,184.41
Adjusted Net Profit 21.232.346.746.451.299.312.759.272.2180
Net Op. Cash Flow (Rs. Cr.) -12.2-45.4-7.6-5.7-10.1-8-33.30.70.7-7
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Maharashtra Scooters Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.6%17.2%21.9%6.1%
Adjusted EPS 26.8%28.5%141.6%148.8%
Book Value per Share 50.3100.77.8-27.5
Share Price 26.9% 16.4% 1.2% -39.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 10.315.6321.8820.0220.8635.190.370.80.741.84
Operating Profit Margin (%) -207.33-168.73-50.37-115.26-72.44-71.61-68.8-62.1-37.76-33.22
Net Profit Margin (%) 341.58483.11697.551110.05736.421106.2149.82480.24498.121168.14
Debt to Equity 0000000000
Working Capital Days 6567929701,4951,1291,3381,344689442350
Cash Conversion Cycle 375891152114115110105115147
Entity Percentage Holding
Promoters 51.00%
Institutions 7.75%
Non-Institutions 41.25%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Maharashtra Scooters Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Maharashtra Scooters Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Maharashtra Scooters Ltd.'s performance infers:

Maharashtra Scooters Ltd. earnings have grown by 28.5%, whereas share price has appreciated 16.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Maharashtra Scooters Ltd. share prices over the last 10 years. Here is what we found out:

Maharashtra Scooters Ltd. share price has appreciated 21% annually over the past ten years.

Maharashtra Scooters (MSL) was incorporated on June 11, 1975. It holds 3.35% stake in Bajaj Auto in addition to 4.88% stake in Bajaj Auto Finance. It is a joint sector enterprise promoted by Western Maharashtra Development Corporation (27%) and Bajaj Auto (24%).

The company assembled geared scooters, but due to non-availability of CKD packs from Bajaj Auto, the company stopped production of geared scooters in April 2006. MSL has managerial and technical agreement with Bajaj Auto for

Maharashtra Scooters (MSL) was incorporated on June 11, 1975. It holds 3.35% stake in Bajaj Auto in addition to 4.88% stake in Bajaj Auto Finance. It is a joint sector enterprise promoted by Western Maharashtra Development Corporation (27%) and Bajaj Auto (24%).

The company assembled geared scooters, but due to non-availability of CKD packs from Bajaj Auto, the company stopped production of geared scooters in April 2006. MSL has managerial and technical agreement with Bajaj Auto for production of scooters. Scooter brands included Chetak, Super and Priya. The company has its plants in Waluj and Akurdi.

The registered office of the company is at Bajaj Auto, Mumbai-Pune Road, Akurdi, Pune-411035, Maharashtra.

Milestones

  • 1975 - The company was incorporated on June 11, at Pune.
  • 1975 - The company entered into two agreements with Bajaj Auto, one for the preparation of the project report and another for technical know-how and assistance.
  • 1975 - The technical know-how agreement was to be in force for a period of 10 years from the date of commencement of operations or till the company achieved a total production of 3,00,000 scooters whichever is later. Under the agreement, Bajaj Auto, agreed to supply to the company components at reasonable prices which was understood to be lower than the dealer prices for the said components in the replacement market.
  • 1985 - The installed capacity was increased from 73,000 to 87,000 motorized two-wheelers up to 350cc engine capacity.
  • 1986 - An application was made for further enhancement of its licensed capacity from 87,000 to 2,00,000 numbers of motorized two-wheelers and three-wheelers up to 350cc engine capacity, under the scheme of re-endorsement of industrial capacity with reference to the minimum economic scales of operation announced by the Government.
  • 1986 - The company renewed its technical agreement with Bajaj Auto, for a further period of ten years from January 1, 1998.
  • 1990 - During the year, commercial manufacture of Bajaj Super Scooters for which a technical know-how agreement was entered into with Bajaj Auto, on terms and conditions similar to the agreement for manufacture of Priya Scooters.
  • 1996 - The company renewed its technical know-how agreement with Bajaj Auto for a further period of 10 years as similar terms. Company also entered into a protocol agreement with both the promoters of the company i.e. Bajaj Auto and Western Maharashtra Development Corporation.
  • 2000 - Bajaj Auto offered to buy out the Maharashtra government’s entire 27 per cent holding in this scooter manufacturing joint venture Maharashtra Scooters (MSL).
  • 2000 - The company introduced five-day working week at its plant in Satara due to recession in the scooter segment.
  • 2000 - Maharashtra Scooters, Satara, were presented the R J Rathi Award for Environment Pollution Control.
  • 2001 - Bajaj Auto has evinced interest to purchase the 27 per cent equity stake in Maharashtra Scooters
  • 2002 - Maharashtra government has formed a committee headed by chief secretary Ajit Nibalkar to speed up strategic sale of its stake in Maharashtra Scooters.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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