MAHSCOOTER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.2
| Stock Code | MAHSCOOTER | Market Cap | 15,006 Cr. | Current Price | 13,157 ₹ | High / Low | 18,538 ₹ |
| Stock P/E | 48.3 | Book Value | 28,887 ₹ | Dividend Yield | 1.22 % | ROCE | 0.59 % |
| ROE | 0.61 % | Face Value | 10.0 ₹ | DMA 50 | 14,038 ₹ | DMA 200 | 14,009 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.02 % | PAT Qtr | 4.12 Cr. | PAT Prev Qtr | 267 Cr. |
| RSI | 41.8 | MACD | -264 | Volume | 3,116 | Avg Vol 1Wk | 4,306 |
| Low price | 8,822 ₹ | High price | 18,538 ₹ | PEG Ratio | 6.84 | Debt to equity | 0.00 |
| 52w Index | 44.6 % | Qtr Profit Var | 24.8 % | EPS | 313 ₹ | Industry PE | 22.5 |
📊 Financials: Maharashtra Scooters has a market cap of 15,006 Cr. with quarterly PAT at just 4.12 Cr., down sharply from 267 Cr. ROE at 0.61% and ROCE at 0.59% are extremely weak, indicating poor efficiency. Debt-to-equity ratio is 0.00, showing a debt-free balance sheet, but profitability remains negligible. EPS stands at 313 ₹, though earnings visibility is inconsistent.
💹 Valuation: Current P/E of 48.3 is more than double the industry average of 22.5, suggesting overvaluation. P/B ratio is ~0.46 (13,157 ₹ / 28,887 ₹), which looks cheap relative to book value but reflects weak earnings power. PEG ratio of 6.84 highlights overpriced growth. Intrinsic value appears lower than current market price, making the stock unattractive for fresh entry.
🏭 Business Model & Competitive Advantage: Maharashtra Scooters primarily functions as an investment holding company with exposure to Bajaj group entities. Its competitive advantage lies in strategic holdings rather than core operations. However, limited direct business activity and weak profitability metrics reduce its attractiveness as a standalone investment.
📈 Entry Zone: With RSI at 41.8 (neutral) and support near 8,800–9,200 ₹ (close to 52-week low), entry is advisable only at lower levels. Current price at 13,157 ₹ remains expensive relative to fundamentals.
🕰️ Long-Term Holding Guidance: The company is fundamentally weak with poor profitability and stretched valuations. Long-term holding is not recommended unless earnings visibility improves significantly and valuations normalize.
Positive
- Debt-free balance sheet ensures financial stability.
- Strong book value (28,887 ₹) compared to market price.
- Exposure to Bajaj group companies provides indirect growth potential.
- Dividend yield of 1.22% offers some investor return.
Limitation
- Extremely weak ROE (0.61%) and ROCE (0.59%).
- Quarterly PAT collapsed (4.12 Cr. vs 267 Cr.).
- High P/E (48.3) compared to industry average (22.5).
- PEG ratio of 6.84 indicates overpriced growth.
Company Negative News
- Sharp decline in quarterly profitability.
- Weak operational performance despite strong holdings.
Company Positive News
- Debt-free balance sheet provides financial resilience.
- Exposure to Bajaj group entities supports long-term value.
Industry
- Industry P/E at 22.5 highlights Maharashtra Scooters’ overvaluation.
- Automobile and investment holding sector remains cyclical and sensitive to market conditions.
Conclusion
⚖️ Maharashtra Scooters is fundamentally weak with poor profitability and stretched valuations. Entry is advisable only near 8,800–9,200 ₹, and long-term holding is not recommended unless earnings improve and valuations normalize.