Macpower CNC Machines Ltd Gains 7.40%: 3 Key Factors Driving the Weekly Rally

Strong Start on 9 February: Positive Market Sentiment

Macpower CNC Machines Ltd began the week on a positive note, closing at Rs.847.50 on 9 February 2026, a 1.21% increase from the previous Friday’s close of Rs.837.40. This rise was in line with the Sensex’s 1.04% gain to 37,113.23, reflecting a broadly favourable market environment. The stock’s volume of 18,548 shares indicated moderate trading interest as investors positioned ahead of the company’s quarterly results.

10 February: Quarterly Financial Turnaround Spurs 6.61% Rally

The highlight of the week came on 10 February when Macpower CNC Machines Ltd announced a strong quarterly financial turnaround for the December 2025 quarter. The company reported record net sales of ₹86.15 crores and a PBDIT of ₹15.58 crores, marking the highest quarterly figures in recent history. Operating profit margin expanded to 18.08%, while net profit after tax reached ₹9.79 crores, translating to an EPS of ₹9.79.

This robust performance was a significant improvement from previous quarters, signalling renewed operational strength amid a challenging industrial manufacturing sector. The stock responded sharply, surging 6.61% to close at Rs.903.50, its weekly high, on heavy volume of 361,474 shares. Intraday, the stock touched a high of Rs.1,015.00, reflecting strong investor enthusiasm.

Despite this surge, the stock remains below its 52-week high of Rs.1,298.35, indicating potential for further upside if momentum sustains. The Sensex, meanwhile, posted a modest 0.25% gain to 37,207.34, underscoring Macpower CNC’s significant outperformance on the day.

11 to 13 February: Mixed Technical Signals Amid Consolidation

Following the strong rally, the stock experienced some volatility and consolidation. On 11 February, Macpower CNC closed at Rs.889.25, down 1.58% from the previous day’s close, on volume of 55,470 shares. The Sensex continued to rise modestly by 0.13% to 37,256.72, indicating the stock’s slight underperformance on the day.

On 12 February, the stock inched up 0.22% to Rs.891.20, despite the Sensex declining 0.56% to 37,049.40. The relatively low volume of 15,657 shares suggested cautious trading. The following day, 13 February, saw the stock close at Rs.899.40, up 0.92%, while the Sensex fell sharply by 1.40% to 36,532.48, highlighting Macpower CNC’s resilience amid broader market weakness.

Technical analysis during this period indicated a mildly bullish shift. Daily moving averages turned positive, and the monthly RSI showed emerging strength, signalling improving investor sentiment. However, bearish signals from MACD and Bollinger Bands, along with a lack of clear trend confirmation from Dow Theory, suggested the stock remained in a consolidation phase. Volume trends were mixed, with On-Balance Volume indicating mild accumulation on a monthly basis but inconsistent weekly patterns.

Overall, these mixed technical signals imply that while the stock is showing signs of recovery, confirmation of a sustained uptrend remains pending.

Weekly Price Performance: Stock vs Sensex

Key Takeaways

Positive Signals: Macpower CNC Machines Ltd demonstrated a strong financial turnaround with record quarterly revenue and profit margins, driving a significant stock price rally on 10 February. The company’s operating profit margin expanded to 18.08%, and net profit after tax reached ₹9.79 crores, signalling operational efficiency and growth potential. The stock outperformed the Sensex by a wide margin, gaining 7.40% for the week versus the index’s 0.54% decline.

Technical indicators show a mildly bullish shift, with daily moving averages and monthly RSI suggesting improving momentum. The upgrade of the Mojo Grade to Hold reflects a more optimistic outlook compared to the previous Sell rating, acknowledging the company’s improved fundamentals.

Cautionary Signals: Despite the positive earnings, operational challenges remain. The debtors turnover ratio declined to 5.25 times, indicating slower receivables collection, while cash and cash equivalents dropped to ₹0.75 crores, highlighting tighter liquidity. Technical momentum is mixed, with MACD and Bollinger Bands still bearish on weekly and monthly charts, and volume trends inconsistent. The stock remains well below its 52-week high, underscoring the need for sustained positive catalysts to maintain the rally.

Conclusion

Macpower CNC Machines Ltd’s week was defined by a robust quarterly financial turnaround that catalysed a notable 7.40% gain in its stock price, significantly outperforming the Sensex. The company’s improved profitability and margin expansion mark a positive shift in its operational trajectory, supported by a mildly bullish technical outlook. However, ongoing working capital concerns and mixed technical signals suggest that investors should monitor liquidity and momentum indicators closely in the near term.

While the upgraded Mojo Grade to Hold signals cautious optimism, the stock’s distance from its 52-week high and the broader market volatility warrant a measured approach. Overall, Macpower CNC Machines Ltd appears to be emerging from a consolidation phase with potential for further gains, provided it can sustain its financial momentum and resolve operational challenges.

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