Buy Man Industries; target of Rs 135: NVS Brokerage

NVS Brokerage reserach report on Man Industries (India)Man Industries Ltd. (MIL), flagship company of Man Group promoted by Mr. Ramesh Mansukhani (Chairman), 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.MIL posted robust financial performance for Q1FY15 with revenue increasing by 75% YoY to Rs. 405 Crs. as compared to Rs. 231 Crs. in Q1FY14, net profit rose by 460% to Rs. 18 Crs. (Rs. 3 Crs). the EPS working out to Rs 3.1 and OPM & NPM stood at 12% and 4% against 9% and 1% respectively.3.MIL’s FY2015 consolidated total income increased by 36% YoY to Rs. 1,364 Crs. (Rs. 1,005 Crs). Net profit for the year increased by 458% YoY to Rs. 50 Crs. (Rs. 9 Crs.) and EPS working out to Rs. 8.8 on a tiny equity capital base of Rs. 28.6 Crs. At a CMP of Rs. 83 the share trades at a PE multiple of only 9x and the Mcap at only Rs. 475 Crs.MIL has a strong presence in exports market with Middle Eastern countries as major of its business volumes is exported to that region. MIL also exports to other regions like USA, Europe, Africa and South East Asia.Assuming 30% topline growth (36%), company could gross the Topline of over Rs 1,775 Crs. in FY16, EBITDA of Rs. 187 crs. and PAT at Rs. 85-90 crs with potential EPS at Rs 15 +, making the share available a little over PE of 5x. This offers an excellent opportunity for growth and we strongly recommend for investment to all our clients.For all recommendations, click here 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.

Read More