MAHSCOOTER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | MAHSCOOTER | Market Cap | 14,561 Cr. | Current Price | 12,743 ₹ | High / Low | 18,538 ₹ |
| Stock P/E | 46.9 | Book Value | 28,887 ₹ | Dividend Yield | 1.25 % | ROCE | 0.59 % |
| ROE | 0.61 % | Face Value | 10.0 ₹ | DMA 50 | 13,392 ₹ | DMA 200 | 13,799 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 4.12 Cr. | PAT Prev Qtr | 267 Cr. |
| RSI | 41.2 | MACD | -267 | Volume | 6,617 | Avg Vol 1Wk | 4,494 |
| Low price | 9,225 ₹ | High price | 18,538 ₹ | PEG Ratio | 6.64 | Debt to equity | 0.00 |
| 52w Index | 37.8 % | Qtr Profit Var | 24.8 % | EPS | 313 ₹ | Industry PE | 24.7 |
📊 Financial Overview
- Revenue & Profitability: PAT dropped sharply from 267 Cr. to 4.12 Cr. QoQ, showing severe earnings pressure. EPS at 313 ₹ is modest relative to valuation.
- Margins & Returns: ROE at 0.61% and ROCE at 0.59% are extremely weak, reflecting poor capital efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, a positive for financial stability.
- Cash Flow: Weak profitability limits reinvestment capacity despite strong asset base.
💹 Valuation Metrics
- P/E Ratio: 46.9 vs Industry PE of 24.7 → Overvalued.
- P/B Ratio: ~0.44 (Price 12,743 ₹ / Book Value 28,887 ₹) → Attractive relative to assets.
- PEG Ratio: 6.64 → Indicates growth is priced expensively.
- Intrinsic Value: Current price appears above fair value given weak returns.
🏢 Business Model & Competitive Advantage
Maharashtra Scooters Ltd. operates primarily as an investment company with holdings in Bajaj group entities. Its competitive advantage lies in its asset base and dividend income from investments rather than core operations. However, profitability from standalone operations remains weak.
📈 Entry Zone & Long-Term Guidance
Technically, RSI at 41.2 and negative MACD suggest weakness. A better entry zone would be closer to 11,500–12,000 ₹ (near support levels). Long-term holding is advisable only for investors seeking exposure to Bajaj group investments rather than standalone earnings growth.
✅ Positive
- Debt-free balance sheet.
- Strong book value (28,887 ₹).
- Dividend yield of 1.25% provides income support.
⚠️ Limitation
- Extremely weak ROE (0.61%) and ROCE (0.59%).
- High PEG ratio (6.64) indicates expensive growth pricing.
- Profitability collapsed QoQ.
📉 Company Negative News
- PAT dropped drastically from 267 Cr. to 4.12 Cr.
- Weak operational performance despite strong asset base.
📈 Company Positive News
- Debt-free status enhances financial stability.
- Dividend yield supports long-term investors.
🏭 Industry
The investment holding and auto ancillary sector benefits from exposure to Bajaj group companies. However, standalone profitability is weak, and valuations remain stretched compared to industry averages.
🔎 Conclusion
Maharashtra Scooters Ltd. is fundamentally weak in terms of profitability and return ratios, despite strong book value and debt-free status. The stock is overvalued relative to earnings but attractive for investors seeking exposure to Bajaj group investments. Entry near 11,500–12,000 ₹ is recommended for cautious long-term accumulation.