Downside seen in Man Industries , says SP Tulsian, Investment Advisor.
Tulsian told CNBC-TV18, "Man industries is making large Dia Carbon Lined Pipe Lines which are used for high pressure sectors like oil, gas petrochemical and water and infact this is a Rs 1500 crore top line company and if we take the financial performance of 9 months which has been posted by the company, if we extrapolate the same trend, the company should be able to post a top line of close to Rs 1500 crore with EPS of about Rs 25 with cash EPS close to about Rs 36-37. The present book value of the share is about Rs 100."
He further added, "The Company had some issues maybe in respect to the differences between the promoters as well as the operational difficulty. But all this seems to have sorted out and going ahead the company is quite confident, management is quite confident and if we go by the financials, share available at a PE of less than 3 with a price to book of maybe about 0.7 times and the kind of growth which we are expecting in the sector with the huge pipeline network being laid for the oil and gas sector as well as the water pipeline the company has very good potential and I expect that share can breach 3-digit mark maybe in next 8-10 months time and its likely to be a consistent stock having very downside risk from here on."
