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Background

Mamata Machinery Ltd. established in 1989, is a leading manufacturer and exporter of plastic bag, pouch-making machines, and packaging equipment, with over 4,500 installations across 75 countries. The company serves industries like FMCG, food, beverages, and e-commerce, with notable clients like Balaji Wafers and Hershey India. Operating from state-of-the-art facilities in Gujarat and Florida, Mamata focuses on innovation, holding patents for advanced manufacturing technologies. Its strong R&D and skilled workforce enable high-quality, customized solutions. Financially, Mamata has achieved steady growth, with revenue and EBITDA growing at a CAGR (FY22-FY24) of 11% and 26%, positioning it strongly in the global packaging market.

Details of the Issue:

The public issue consists of Offer For Sale aggregating up to Rs 179 Cr

Investment Rationale:

* Advanced Manufacturing Infrastructure Supporting Customization

* Innovation and R&D-Driven Product Development

* Skilled Leadership and Dedicated Workforce

* Expanding Global Presence with Diversified Customer Base

* Operational Efficiency and Cost Optimization

Valuation and Recommendation:-

Mamata Machinery Ltd. leverages advanced manufacturing facilities, and automation to maintain a quality-driven and cost-competitive edge. Its focus on R&D, innovation in recyclable solutions, and patents strengthen its market position. Financially, the company outshines peers with an EBITDA margin of 19.9%, ROCE of 33.2%, and ROE of 27.3%, reflecting superior efficiency. Its valuation multiples, including EV/EBITDA at 12.9x and P/E at 16.6x, are well below peer averages, indicating undervaluation. Based on its strong fundamentals and competitive positioning, we recommend to Subscribe to the issue.

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