Buy Man Industries; target of Rs 113: Firstcall Research

Firstcall Research is bullish on Man Industries and has recommended buy rating on the stock with a target of Rs 113 in its August 06, 2012 research report.

“Man Industries (India) Ltd. is an ISO-9001 accredited company and a member of The Man Group. It 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. It has state-of-the-art manufacturing facilities for LSAW & HSAW Line Pipes and also for various types of Anti-Corrosion Coating Systems. The Man Group promoted by the Mansukhani family in the 1970s with grand vision, is a diversified group with its flagship company Man Industries (India) Ltd incorporated in the year 1988. The main business line includes manufacturing & coating of Large Diameter Carbon steel pipes, Infrastructure, Realty & Trading.”
“Man Industries (India) Ltd, an ISO 9001/14001/18001 accredited company, has been expanding, integrating and growing to fulfill the ambition of achieving Global excellence. Commissioning of its Anjar Line Pipe and Coating Complex in the State of Gujarat on the West-Coast of India in the year 2005 had been a major milestone in the path of progress of the Group. It has emerged out as a prominent player in the league of world-class manufacturers of Line Pipes and Coating Systems in a short span of ten years of its foray into the Global market. Man Industries (India) Ltd. caters to International clients in the oil & gas industry, petrochemicals, water, dredging & fertilizers. The company has positioned itself to bid for almost all pipe projects across the globe.”
“Man Industries (India) Ltd is the leading manufacturer and exporter of large diameter Carbon Steel Line Pipes for various high pressure transmission applications reported its financial results for the quarter ended 30 June, 2012. The first quarter witness a healthy increase in overall sales as well as profitability of the company. The company’s net profit jumps to Rs.258.50 million against Rs.235.80 million in the corresponding quarter ending of previous year, an increase of 9.63%.Revenue for the quarter decrease to 32.49% to Rs.3263.70 million from Rs.4834.20 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.4.53 a share during the quarter, registering 6.13% increase over previous year period. Profit before interest, depreciation and tax is Rs.526.80 millions as against Rs.525.90 millions in the corresponding period of the previous year.”
“At the current market price of Rs 100, the stock P/E ratio is at 4.45 x FY13E and 3.97 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.22.49 and Rs.25.18 respectively. Operating Profit and PAT of the company are expected to grow at a CAGR of 22% and 15% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 2.15 x for FY13E and 1.95 x for FY14E. Price to Book Value of the stock is expected to be at 0.72 x and 0.61 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 113 for medium to long term investment,” says Firstcall Research report.  Shares held by Mutual Funds/UTI Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

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