SOLITAIRE MACHINE TOOLS LIMITED (522152) - SAFE BET

Today I am expressing my view on one Industrial machinery stock

SOLITAIRE MACHINE TOOLS LIMITED (522152)

Solitaire Machine Tools Limited is a leading manufacturer of Precision Center-less Grinders, incorporated in the year 1987 and was publicly listed on Bombay Stock Exchange (BSE) in the year 1993.

SMTL operates from its registered office in Mumbai. It has two manufacturing units in Vadodara, Gujarat (India). Over the years, Solitaire has developed a niche market for itself for catering to the demand of Centerless Grinders. SMTL produced its first Centerless Grinder in 1988. In the years since, the plant has produced over 675 Centerless grinders. Managerial expertise and industry experience have helped the company to show profits every year since its inception.

Solitaire has been working as an exclusive Licensee of CINCINNATI MILACRON, USA to manufacture Precision Centerless Grinders in two primary sizes with wheel widths of 200 mm (8″) and 250 mm (10″). We also offer centerless grinders with wheel widths of 100 mm (4″) and 500 mm (20″). Solitaire has entered into a Licensing arrangement with BOCCA & MALANDRONE SUNEBO S.p.A, ITALY, and developed Bocca line of CNC Centerless Grinders with wheel widths from 200 mm to 500 mm.

COMPANY PRODUCTS

1. CENTERLESS GRINDERS

Company mainly manufactures 3 types of Centerless grinders.

A. Precision Centerless Grinder (4” Grinder with wheel width of 100 mm)

These grinders are designed and manufactured according to international standards and are made for mass production of small components like pins, bushes, needles, medical implements, crank pins, pistons, motor shafts and cutting tools.

B. Precision Centerless Grinder (8” and 10” Grinder with wheel width of 200 mm & 250 mm)

These offer precision, simplicity in operation, reliability, rigidity & cost efficiency and are designed to be a workhorse for the long haul. Solitaire Centerless Grinders are manufactured to international standards with technology from Cincinnati Milacron, USA.

C. Precision Centerless Grinder(20” Grinder with wheel width of 500 mm)

The grinders are offered with advanced CNC versions utilizing Siemens Controls and supporting from 1 to 7 axes of controls. Optionally, SMTL also designs customized loading / unloading systems for complete automation of the grinding process.

2. CNC PRODUCTS

Solitaire has developed one of the most user friendly controls dedicated to Centerless Grinding application. The controls are operated by Siemens 808D or 828D CNC controller with Siemens hardware. The software is provided for Thrufeed and Infeed to allow flexibility of operations. It is user friendly operator Interface Monitor with easy to work, Simple G Code driven software. The software is easily programmable to generate steps, tapers, radii and crown on grinding wheel, which can be customized to suit application. The software can be integrated with various CNC options and customized to suit different applications.

Solitaire Two-Axis CNC Grinding Wheel Dresser

Easily Programmable to generate steps, tapers, radiuses and crown on grinding wheel

Siemens 828D CNC controller with liner and circular interpolation capability

Dedicated software for dresser of Centerless Grinder, can be customized to suit application

AC Digital Brushless Servo motor and drives

Precision ground ball screw and zero backlash nut assembly on both axes

Precision frictionless roller slides on traverse axis (Y axis)

Honed housing and precision ground quill assembly for accurate advance of diamond (Z axis)

Can be integrated with Servo Infeed assembly and other CNC options

Can be installed on New or used grinders

Dress compensation provided in case of integration with Servo infeed attachment

Dress reminder provided on time or number of cycles

Company manufactures upto 5 axis CNC grinder controls. 

CLIENTS & PARTNERS

Company holds following major clients.

Company website: Clickhere

OUTLOOK

Company shares are trading in BSE. Promoter holding in company 44.62%

Company posted 7.27 Cr top line in March qtr.

(QoQ increased 24.4%)

Net profit is 0.34 Cr in the March qtr.

(QoQ increased 17.4 %)

YOY topline increased to 18.3% (18.9 Cr vs 15.9 Cr)

YOY Net profit increased to 52% (1.52 Cr vs 1.01 Cr)

EPS 3.36

Company is virtually debt free.

Stock is trading low PE 15 as compared to major peers.

Stock is trading at Rs 51.

Company has posted good performance Q o Q and year on year basis. Company products are widely used in most of the industries and these industrial segment is evergreen sector. Company is having vast experience in this field and management has a passion to drive growth by infusing new technologies in the product. This will be positive for the stock, this stock will give multiple fold returns to the investors in future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”