Manugraph India

Manugraph India is India’s largest manufacturer of web offset presses. It is the first Indian company to have achieved a breakthrough in exporting “Made in India” printing machines to advanced countries such as Germany, France, UK & USA as early as in 1994-95. It claims to have a 60% market share in web offset printing.

The stock was yesterday locked at the 10% upper circuit at Rs.51.60, a new 52-week high also. This reason for this exuberance was its very good performance it posted for Q2FY16. Purely on operational efficiency, the company recorded a net profit of Rs.9 crore v/s Rs.2 crore in previous Q2 and a loss of Rs.7 crore in Q1. This jump in net profit was thanks to the 46% (YoY) jump in net revenue earned at Rs.86 crore. Of this , domestic sales which accounts for 74% of total revenue earned, showed a robust 49% rise while exports rose 37%.

Though total expenses were up 26% , as a percentage to net revenue, it was down from 99% to 90% (YoY). This resulted in EBITDA coming in healthy at 11 crore, up 5.5 times and margins improved vastly from 3.39% to 10.48%.  Its net profit for H1FY16 stands at Rs.71 lakh v/s loss of Rs.11 crore posted in FY15. Equity is pretty small at Rs.6.08 crore and is virtually debt free. Promoters holding as at 30th Sept 2015 stands at 57,46%, up from 57.16% in Q1. There is no FII holding while DIIs hold 9.36%.