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MAHSCOOTER - Fundamental Analysis: Financial Health & Valuation

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Rating: 2.7

Last Updated Time : 04 May 26, 11:33 am

Fundamental Rating: 2.7

Stock Code MAHSCOOTER Market Cap 13,993 Cr. Current Price 12,244 ₹ High / Low 18,538 ₹
Stock P/E 45.1 Book Value 24,180 ₹ Dividend Yield 1.80 % ROCE 1.06 %
ROE 1.06 % Face Value 10.0 ₹ DMA 50 12,802 ₹ DMA 200 13,480 ₹
Chg in FII Hold 0.09 % Chg in DII Hold -0.18 % PAT Qtr 4.01 Cr. PAT Prev Qtr 4.12 Cr.
RSI 42.5 MACD -65.4 Volume 3,072 Avg Vol 1Wk 2,030
Low price 10,500 ₹ High price 18,538 ₹ PEG Ratio 2.69 Debt to equity 0.00
52w Index 21.7 % Qtr Profit Var -0.25 % EPS 272 ₹ Industry PE 25.5

📊 Maharashtra Scooters (MAHSCOOTER) shows weak fundamentals despite a strong book value. With a market cap of ₹13,993 Cr. and current price of ₹12,244, the stock trades below its 50 DMA (₹12,802) and 200 DMA (₹13,480), reflecting bearish sentiment. Efficiency metrics are very poor — ROE at 1.06% and ROCE at 1.06% — while valuation is stretched with a P/E of 45.1 compared to the industry average of 25.5. EPS at ₹272 is decent, but quarterly PAT declined marginally (-0.25%). Debt-to-equity is 0.00, indicating a debt-free balance sheet. Technical indicators (RSI 42.5, MACD negative) confirm weak momentum.

💡 Entry Zone: ₹12,000–₹12,150 (near support levels)

📈 Long-Term Holding: Not attractive for long-term investors due to poor efficiency metrics and stretched valuations. Suitable only for short-term accumulation near support zones with strict exit discipline.

✅ Positive

  • Debt-free balance sheet (Debt-to-equity 0.00)
  • Strong book value (₹24,180) supports intrinsic worth
  • EPS of ₹272 provides earnings visibility
  • FIIs marginally increased holdings (+0.09%)

⚠️ Limitation

  • Very weak ROE (1.06%) and ROCE (1.06%)
  • High valuation (P/E 45.1 vs industry 25.5)
  • Quarterly PAT decline (-0.25%) shows stagnation
  • Stock trading below DMA 50 and DMA 200, indicating weak momentum

📉 Company Negative News

  • Consistently poor return ratios despite strong book value
  • Valuation stretched compared to peers

📈 Company Positive News

  • Debt-free balance sheet provides financial stability
  • EPS remains strong at ₹272

🏭 Industry

  • Automobile holding sector trades at lower P/E (25.5), making MAHSCOOTER relatively expensive
  • Industry outlook stable but growth depends on core holdings (Bajaj Auto exposure)

🔎 Conclusion

MAHSCOOTER is fundamentally weak with poor efficiency metrics and stretched valuations, despite strong book value and debt-free status. Entry near ₹12,000–₹12,150 offers a short-term opportunity, but long-term investors should avoid until ROE/ROCE improve significantly.

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