Man Industries -Continuous order flow -Buy

Outlook and Conclusion

- At the current market price of Rs. 117.50, the stock P/E ratio is at 8.71 x FY16E and 7.23 x FY17E respectively.

- Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 13.49 and Rs. 16.26 respectively.

- Net Sales and PAT of the company are expected to grow at a CAGR of 26% and 119% over 2014 to 2017E respectively.

- On the basis of EV/EBITDA, the stock trades at 4.56 x for FY16E and 3.91 x for FY17E. 

- Price to Book Value of the stock is expected to be at 1.20 x and 1.07 x for FY16E and FY17E respectively.

- We recommend ‘Buy’ in this particular scrip with a target price of Rs. 150.00 for Medium to Long term investment. 

Synopsis

- Man Industries (India) Ltd is a leading manufacturer of SAW Pipes (Line Pipes) & Coating Systems for high-pressure Oil & Gas applications with a potential production.

- Net profit during the June quarter increased by 460.44% to Rs. 177.10 million from Rs. 31.60 million in the same quarter of previous year. 

- During the quarter, Revenue rises by 75.46% to Rs. 4053.00 million from Rs. 2309.90 million over the corresponding quarter last year.

- In Q1 FY16, EBIDTA is Rs. 482.80 million, an increase of 121.67% as against Rs. 217.80 million in the corresponding period of the previous year.

- Earnings per Share for the company were Rs. 3.10 in Q1 FY16 as compared to Rs. 0.55 in Q1 FY15.

- Total income of the company in Q1 FY16 stood at Rs. 4213.30 million against Rs. 2463.40 million in the corresponding quarter of the previous year.

- During the quarter, MAN Industries Ltd. gets Export Orders of worth Rs. 5100 million from international markets for oil & gas sector.

- Net Sales and PAT of the company are expected to grow at a CAGR of 26% and 119% over 2014 to 2017E respectively.

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