Multibagger stock engaged in the manufacture of Computerized Numerically Controlled (CNC) machines and more hit a 5 percent upper circuit after it submitted an MoU worth Rs. 100 Crores to the Gujarat Government for The Tenth Vibrant Gujarat Summit 2024.
In the day’s trade, the shares of Macpower CNC Machines Limited hit a 5 percent upper circuit at Rs. 741.75 from its previous day’s close price of Rs. 706.45 and its market capitalization is Rs. 742 Crores. It has delivered multi-bagger returns of 132 percent in a year and 142 percent in the last six months
Macpower CNC Machines Limited has submitted a Memorandum of Understanding (MoU) to the Gujarat Government for The Tenth Vibrant Gujarat Summit 2024 for setting up a CNC Machine manufacturing facility focused on aerospace and defence with an investment of up to Rs. 100 Crores.
The Initial setup for the project shall take 12-18 months after the land allocation is finalized by the state government. Full capacity scale-up of the project on the targeted land shall be achieved over some time along with backward integration to self-sustain in quality supplies of raw materials, casting, and patents, amongst others.
Following the announcement Mr Rupesh Mehta, Chairman & Managing Director of Macpower CNC Machines said, We are excited about this project since this will be the first project of its kind under the new Aerospace & Defence Policy of the state government. We are focused on building and scaling up this project in a systematic manner, post-receipt of land from the state government.
We have been increasing our presence in the defence and aerospace sector through regular orders for our CNC machines. This project will allow us to scale significantly and a major share of our revenues from the new facility shall be from the Aerospace and Defence sector.
Macpower CNC is engaged in the manufacture of Computerized Numerically Controlled (CNC) machines and Lathe Machines.
The company’s revenue from operations grew 6.31 percent from Rs. 190 Crores in FY22 to Rs. 202 Crores in FY23, accompanied by profits of Rs. 13 Crores in both years.
It has reported a return on equity (ROE) of 14.2 percent and a return on capital employed (ROCE) of 19.3 percent, it is making good returns on its equity and capital employed.
Written by: Bharath K.S
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