Moneycontrol PRO

Hold Maharashtra Seamless; target of Rs 265: ICICI Direct

ICICI Direct recommended hold rating on Maharashtra Seamless with a target price of Rs 265 in its research report dated August 27, 2020.

August 28, 2020 / 04:21 PM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Maharashtra Seamless

Maharashtra Seamless (MSL) reported an operationally steady performance for Q1FY21 wherein the company was able to maintain its EBITDA margins despite a challenging market scenario. Consolidated topline for the quarter was at Rs 459 crore (down 34% YoY, 22% QoQ). Seamless pipe sales volume for the quarter was at 44900 tonnes (down 36% YoY, 34% QoQ). Similarly, ERW volumes for the quarter were at 13184 tonnes (down 18% both QoQ as well as YoY). On a consolidated basis, the company reported an EBITDA margin of 22.0% (compared to 22.2% in Q1FY20, 17.7% in Q4FY20). Consolidated EBITDA was at Rs 101 crore (down 3% QoQ, 35% YoY). For the consolidated operations, for the quarter, depreciation expense were at Rs 29 crore (up 4% QoQ, 45% YoY), finance cost was at Rs 16 crore (up 13% QoQ but down 12% YoY) while other income was at Rs 17 crore (down 10% YoY). Ensuing consolidated PAT for the period was at Rs 45 crore (down 41% YoY).


For Q1FY21, MSL reported an operationally steady performance. For the quarter, consolidated EBITDA margins were at 22.0% (22.2% in Q1FY20 and 17.7% in Q4FY20). Going forward, we model consolidated operating margins of 19.7% for FY21E and 20.6% for FY22E. We value the stock at 5x FY22E EV/EBITDA and arrive at a target price of Rs 265. We maintain our HOLD rating on the stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 28, 2020 04:21 pm