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Solitaire Machine Tools Ltd Stock Analysis

Small Cap
Evaluated by 159 users | BSE: 522152 | NSE: |
Engineering - Industrial Equipments
Solitaire Machine Tools (SMTL) was incorporated in 1987 and was publicly listed on Bombay Stock Exchange in 1994. Solitaire Machine Tools, is a leading manufacturer of Precision Centerless Grinders in India. The company has been working as an exclusive licensee of Cincinnati Milacron, USA....

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.85%15.35%9.45%3.99%6.68%10.47%16.08%14.72%9.92%5.25%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9.614.110.49.210.815.718.316.415.612.3
Y-o-Y Gr. Rt.-47.4%-26.4%-10.9%16.9%45.1%17.1%-10.8%-4.7%-21.4%
Adjusted EPS (Rs.) 1.753.142.060.871.512.454.044.082.921.5
Y-o-Y Gr. Rt.-79.4%-34.4%-57.8%73.6%62.3%64.9%1%-28.4%-48.6%
Book Value per Share (Rs.) 20.521.7222.7923.0222.8124.0127.129.8331.3331.32
Adjusted Net Profit 0.81.40.90.40.71.11.81.91.30.7
Net Op. Cash Flow (Rs. Cr.) 4.71.7-0.61.1-0.23.31.821.21
Debt to Cash Flow from Ops 0.160.15-0.771.19-5.60.020000
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.
Solitaire Machine Tools Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.8%2.6%-12.6%-21.4%
Adjusted EPS -1.7%-0.1%-28.1%-48.6%
Book Value per Share 4.86.64.90
Share Price 5.5% 6.2% -24.9% -9.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.6714.859.283.816.5910.4515.8214.329.554.78
Operating Profit Margin (%) 23.9719.9920.0812.4619.4514.7219.418.9318.716.5
Net Profit Margin (%) 8.3410.129.054.36.357.110.0111.318.55.54
Debt to Equity 0.080.030.040.120.10.010000
Working Capital Days 190110141201234158126169203296
Cash Conversion Cycle 93507411115410979105133228
Entity Percentage Holding
Promoters 45.31%
Non-Institutions 54.69%
Pledged *0.000.000.000.000.000.000.000.000.000.64
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Solitaire Machine Tools Ltd's performance infers:

Solitaire Machine Tools Ltd earnings have declined by -0.1%, whereas share price has appreciated 6.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Solitaire Machine Tools Ltd share price has appreciated 6.8% annually over the past ten years.

Solitaire Machine Tools (SMTL) was incorporated in 1987 and was publicly listed on Bombay Stock Exchange in 1994. Solitaire Machine Tools, is a leading manufacturer of Precision Centerless Grinders in India. The company has been working as an exclusive licensee of Cincinnati Milacron, USA.

SMTL offers Rebuilding and CNC Retrofitting services to customers for any model of Cincinnati Centerless Grinders.SMTL also manufactures small Centerless Grinders with 100 mm ( 4' ) wheel width ( No.1)

Solitaire Machine Tools (SMTL) was incorporated in 1987 and was publicly listed on Bombay Stock Exchange in 1994. Solitaire Machine Tools, is a leading manufacturer of Precision Centerless Grinders in India. The company has been working as an exclusive licensee of Cincinnati Milacron, USA.

SMTL offers Rebuilding and CNC Retrofitting services to customers for any model of Cincinnati Centerless Grinders.SMTL also manufactures small Centerless Grinders with 100 mm ( 4' ) wheel width ( No.1) and large Centerless Grinders with 500 mm ( 20' ) wheel width (No.3)

SMTL has entered in licensing arrangement with Bocca & Malandrone Sunebo S.p.A of Italy in 2007. The Bocca line of grinders will be offered to Indian customers directly by SMTL and worldwide through Bocca, Italy.

SMTL produced its first centerless grinder in 1988. In the years since, the plant has produced over 510 Centerless grinders. Approximately 55% of the grinders produced are exported directly to USA and  the balance are being used by Indian customers.

SMTL is currently developing Bocca line of CNC Centerless Grinders with wheel width from 200 mm to 500 mm.

Products manufactured by the company:

SMTL manufacturers Precision Centerless Grinders in two primary sizes with wheel widths of 200 mm and 250 mm. A smaller 100 mm wheel width grinder has been developed in 2002 and as of date about 25 machines of this size have been supplied to various customers. The large 500 mm wheel width grinder has been developed in 2007 and couple of machines have been supplied to customers.

The grinders are offered standard with conventional hydraulic and pneumatic controls. More advanced CNC versions utilizing Siemens Controls and supporting from 1 to 6 axes of control are also being offered. Optionally, SMTL also designs customized loading / unloading systems for complete  automation of the grinding process.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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