Jyoti cnc looks better placed now, they have added employees from 2936 in Q42023 to 3901 in Q32024
Compare to macpower 1168 in Q42023 to 1265 in Q32024
Hardly any increase in employee.
With the tailwinds going, definitely they need to be bit more aggressive.
In my humble opinion the current base is too small in context to the total order book of all the listed companies + ace microtech soon to be listed ( close to 8000 cr or 1 billion ). The good news is that the bigger listed companies are doing extremely ie. the sector is doing well.
One good order of close to 100 crores and it can change the face of the Profit and loss statement.
For that reason, sitting tight. It should do well by March FY26. ( 1.5 years ) keen to look at this YOY going forward.
He is still certainly a champion capital allocator, just needs some luck and orders in his name.
@gauravpersonal absolutely agree. Should still be given 1-1.5 years. The tailwinds are strong and we can’t discount that he’s a very good capital allocator 
The results by no means were bad. Plus what’s in pipeline if it materialises, then there’s no looking back.
As someone from the Machine Tool Industry for 12 Years Below are my views
All Top machine tools companies in India has Mastered the Manufacturing of VMC and Turning Centers in the past decade and have done an excellent job doing so. So much so that some of that are now exporting also. This opened up talent pools who have started smaller companies selling 4-5 machines a month and adding margin pressures to top companies as well.
The new leg of machine Tool growth will depend on which companies can build the Best 5-Axis machines, Double column Machines with table sizes greater than 2.5 meters and VTL with a diameter greater than 1200mm.
Macpower has claimed that they have their 5 Axis machine ready which shall be Put up At Imtex exhibition which is Indias Largest Machine Tool expo.
Currently 5 Axis machine machine is Ruled by Imported Machines such as Mazak, Makino, Haas and DMG Mori and the ticket size of Each machine ranges from 70 L to 1 Cr and beyond.
The need for 5 Axis machining is growing with demand for complex parts coming in and the need to reduce cycle times has become extremely important to machine shops to increase their margins.
If Macpower can break in with the 5 Axis machine it can increase Revenues and Margins Significantly in Future. Will have to wait and see how this goes and Indian Shop floors still do not trust Indian Machines in this particular segment and prefer imported ones.
Secondly Macpower has introduced a Drill Tap center with 20000 RPM Spindle. These machines are for EMS and are usually Ordered in Bulk once proven at customers end. If this product succeeds the order book will increase significantly.
Another important thing Macpower mentioned is the Manufacturing of Own telescopic covers and Spindles. These are Class A items in the machine which have significant costs and they have margins increasing with this for sure. They also plan to manufacture turrets which is one of the most important part of the turning center machine. If they can do that that will again add to margins.
Apart from the growing demand in the market, this decade is also the decade for replacement market for Indian machine tool builders. Majority of the imported CNC machines that came into india 2 decades back especially VMC and Turning centers and being Replaced by Indian Machines. This will add as a cushion to demand.
For more research Imtex Exhibition is the place to be happening from 23rd Jan - 25 in Bangalore. A lot of new orders generally go on hold during this time as machine shops prefer to place orders at Imtex as they have certain special discounts at exhibitions. Indian Manufactures with 5 Axis machining capabilities will be at display there.
Disclosure : Not Invested. Views are from On Field Experience
Hi, Can you please share your views on a newly listed company Energy-Mission Machineries? I found in RHP, that they derive major revenues from Hydraulic CNC Press Brake Machine.
Some PAN India big orders in MSME round the corner worth Rs. 400 crores.Shows push for training in manufacturing for the new crop.
Also, they open the next day, that way we get the name of the successful bidder right away in Q4 hopefully.
This also coincides with the announcement of the new land parcel which is probable in Q4 and the possible addition of order book from the imptex exhibition in banglore in where companies are happy to give out great discounts in search of new orders.
Good info on Machine tools industry
