Macfos Ltd. is an e-commerce company with its own website and mobile app (Robu.in). Special parts for robots, drones, e-bikes, IoT and wireless devices, 3D printers, DIY learning kits, sensors, motors, motor drivers, batteries and chargers, pumps, and other mechanical and electronic components are among the products sold on its site.
The company has a 7900-square-foot fulfillment center in Pune, Maharashtra, and it also uses third-party logistics services. Over 83,000 clients from 28 states and 6 union territories placed orders totaling over 2 lakhs in FY 2021–22, according to the business. M&M, HAL, Tata Power Solar Systems Ltd., Central Electronics Engineering Research Institute, Pilani, Bharat Forge Ltd., Tata Communications Ltd., Wipro Enterprises Pvt. Ltd., ONGC, and Schneider Electric India Private Limited are among Macfos’ more well-known
clients. The company promoters include Atul Maruti Dumre, Nileshkumar Purushottam Chavhan and Binod Prasad.
Macfos Ltd. IPO Objective
- The primary objective is for the selling shareholders to earn cash from the share sale.
Why should you invest in Macfos Ltd. IPO?
- E-commerce is a growing industry in India, and its reach is spreading fast into tier-2 and tier-3 cities. Given the three-pronged increase in digitisation of commerce and payments, increasing income and preference to buy standardised products from online platforms, it is great to buy stocks of an e-commerce company
- A lot of e-commerce companies get too confused regarding what exactly they are trying to sell. Unlike such companies, Macfos is trying to build a niche for itself in a particular segment.
- Since e-commerce can always be a global business, the scope for growth for the company is immense.
- An increase in the market capital of the company will allow it to raise more capital and cash, allowing an India-based e-commerce platform to grow. This in turn will allow Indian manufacturers to get better prices in both the Indian and global markets.
Macfos Ltd. Company Financials
| Period ending 30th Sept, 2022 | Period ending 31st March 2022 | Profit After Period ending 31st March, 2021 Tax | |
|---|---|---|---|
| Total Revenue | 36.05 cr | 55.87 cr | 27.33 cr |
| Restated Profit after Tax | 2.95 cr | 6.01 cr | 1.58 cr |
| Net increase/(decrease) in cash and cash equivalents | 74.04 lakhs | 81.73 lakhs | 15.01 lakhs |
| Current Ratio | 2:18 | 2:31 | 1:42 |
| Long term borrowings | 4.33 cr | 2.97 cr | 0.33 cr |
| Short term borrowings | 5.04 cr | 3.06 cr | 3.16 cr |
Macfos Ltd. noteworthy highlights
- Their e-bike parts category consists of over 100 items, including e-bike kits, motors and controllers, batteries, etc.
- Their drone parts category consists of over 850 items, including frame and accessories, flight controllers, transmitters and receivers, FPV Cameras, GPS and antennas, etc.
Strengths
- Extensive and diverse portfolio of electronic equipment.
- Growing retail and business customers.
- Experienced promoters with domain knowledge.
Risks
- The company is dependent on external vendors for sourcing their product requirements, which exposes it to risks that are beyond its direct influence. They are also dependent on third-party data centers for hosting facilities and other service providers.
- The markets for hi-tech products like robots and drones change quite fast, and the company may not be able to keep up with the pace of change.
- Their revenues depend upon increasing the number of consumers of the products that they sell; this is something that is not easy to influence, especially in the case of niche electronic equipment.
