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Solitaire Machine Tools


Solitaire Machine Tools manufactures ‘Centreless Grinder’ machines for use in the automobile, textile, steel, bearings and precision engineering industries.

Management believes there is opportunity to increase sales on the back of manufacturers looking to outsource auto ancillary products from India.

The company reported stable operating profits on reasonably stable revenues – reporting just under 3cr of operating profits on revenues of about 14cr in the last twelve months.  It operated with no net debt as at 31st March, 2012.

The company sold 37 machines in FY 2011 as compared 24 in the previous year – but this figure is likely to come under pressure in the near future as the business is adversely impacted by a high interest-rate environment (such as currently), which dampens customers’ capital investment plans.

The company is also heavily influenced by government policies- particularly in the areas of import/export and incentives for investments, which can affect demand and competition for the company’s products.

The business is exposed to increases in raw material pricing and/or lack of its availability.

Management plans to boost revenue via exports to Europe may have to take a back seat for the time being as a result of the demand slowdown there.

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