Synopsis:
Mamata Machinery Limited secured its second export order worth USD 1.17 million for a 9-layer blown film plant under its Co-Extrusion segment. The plant, used for high-barrier film production, will be delivered by March 31, 2026.
The shares of the Small-Cap company, specializing in manufacturing and exporting advanced machinery for the flexible packaging industry, jumped upto 20 percent upon receiving an export order for an advanced film plant valued at USD 1.17 million.
With a market capitalization of Rs. 1,138.97 Crores on Wednesday, the shares of Mamata Machinery Ltd rose by 20 percent after making a high of Rs. 492.00 compared to its previous closing price of Rs. 411.30.
What happened
Mamata Machinery Ltd, engaged in manufacturing and exporting advanced machinery for the flexible packaging industry, has announced that it has secured its second export order for a state-of-the-art 9-layer blown film plant under its Co-Extrusion product segment, valued at approximately USD 1.17 million.
This advanced plant will be used to produce high-barrier films for critical applications. The order has been placed by an international entity, though the name of the awarding party is withheld due to confidentiality. The company is expected to complete the project by the end of the quarter on March 31, 2026.
Financials & Others
The company’s revenue rose by 39.97 percent from Rs. 27.62 crore to Rs. 38.66 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 0.22 crore to Rs. 2.65 crore during the same period.
The company has delivered strong profit growth with a 5-year CAGR of 109% and maintains a healthy return profile, with a 3-year average ROE of 24.9%, current ROE at 26.9%, and ROCE at 34.9%. Its stock is trading at a P/E of 25.0, which is attractively lower than the industry average P/E of 36.3.
Mamata Machinery Ltd is a leading manufacturer and exporter of machinery and equipment for the converting and packaging industry, with a primary focus on bag, pouch making, and flexible packaging solutions. Established in 1979 (originally as Patel Machinery Private Limited), the company has its headquarters in Ahmedabad, Gujarat, India.
It is a 35+ year-old established brand with over 5,000 global installations and exports contributing to 71%+ of its top line. The company has delivered machinery to 80+ countries, operates with a net-debt-free balance sheet, and is known for its industry-leading profitability and return ratios. It has 199 team members (including 18 in the USA) and maintains 2 international offices/agents across Africa, the Middle East, Europe, Asia, and South-Central America.
Mamata Machinery’s key clientele includes both brand owners (mainly FMCG and consumer goods companies) and converters (tier-1 suppliers to the packaging industry). The company serves three main customer segments:
The Co-extrusion clients include Dass Polymers, Dhwani, and ENPI Group; converting clients include Suopack, Bansal Industries, and KPI Group; and packaging clients include Chitale, Gits, Hershey’s, and Balaji. The company maintains long-term relationships with major clients, with the top five customers contributing approximately 20% of its revenue.
Written by Sridhar J
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