[stock_ticker symbols=”MANINDS” show=”name” static=”0″ nolink=”” duplicate=”1″ class=””]

05-Jun-2016 : Man Industries is a leading manufacturer and exporter of large diameter Carbon Steel Line Pipes for various high pressure transmission applications for Gas, Crude Oil, Petrochemical Products and Potable Water. The Company has state-of-the-art manufacturing facilities for LSAW & HSAW Line Pipes and also for various types of Anti-Corrosion Coating Systems.

Man Industries has strong presence in export market specifically in the middle east countries. It has marquee domestic clients as well namely GAIL, ONGC, BPCL, HPCL etc.

Though, the fourth quarter number isn’t impressive, the future prospect of the company is attractive. The company has an order book of close to Rs 1400 crore, which is approximately same as company’s consolidated revenue in the last financial year 2015-16.

For the entire year, the company has made a total income of 1390 crore in comparison to 1364 crore last year, which is around 2% higher. The operating income for the entire year was 80 crore in comparison to 71.7 crore in the last year (a jump of 12%). Net profit grows by 65% to 83 crores.

The crude oil price being stable, we see some good traction on this counter. Domestically, there are lots of emphasis from government on water. This may also add to the overall order book. Overall, we believe that the financial year 2016-17, will be a good year for the company.

The company is currently having a twelve months trailing EPS of 14.29 and trading around a PE of 4, which is much lower than its mean PE for the last two years. In the last one year, the company has made a high of Rs 128 and now hovering at around Rs 57. We see limited downside in this counter and believe that the stock can achieve a target of Rs 75 in the next six months.

NSE Code : MANINDS

BSE Code : 513269

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