Man Industries has announced that it has received an export order worth Rs18.5bn for a mega offshore oil & gas project. This is the largest single order in the company’s history. The order is expected to be executed in the next 12- 18 months. We see the news as headline positive for the stock, though it is unlikely to change our revenue estimates meaningfully, as we are already baking in 43% revenue uplift in FY26E over the FY24 base.
OutlookThe size of the order reaffirms our conviction that the business is well positioned to capitalize on a favorable cycle and lift return on equity from through-the-cycle average of 9- 10% to 17.4/21.0% in FY27E/FY28E (link to initiation note). We reiterate our BUY rating with an unchanged target price of Rs500/share.
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