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Company Profile
Incorporated in 1988, Man Industries (India) Ltd’s (MIIL) business line includes
manufacturing and coating of large diameter SAW pipes. The company’s state-ofthe-
art manufacturing units are situated at Pithampur, Madhya Pradesh and Anjar,
Gujarat. Both the plants are equipped with all types of anti corrosion coating
facilities. Majority of its revenues are generated through exports.
Investment Rationale
Well positioned to cater export led growth:
Pipe manufacturing requires quality assurance certificates from various
agencies, both national and international such as KVQA, API, BIS and so
on. MIIL has all these certificates in place.
MIIL has also undergone a technology based MoU with CHR Haeusler
AG of Switzerland, which assures high quality production output from
the company’s plants.
MIIL maintains cordial relationship with its clients in the countries like
USA, Iran, Egypt, Abu Dhabi, UAE, Qatar, Iraq and so on by providing
quality pipes in time which helps them to garner repeat orders.
Exploiting rising demand of global oil & gas consumption:
The oil and gas sector is the primary end user and the biggest demand
driver for pipes historically. Higher oil and gas prices typically drive
exploration capex which drives the momentum for drilling activities and
oil and gas transportation from the oil well to the end consumer. Demand
drivers for the industry are as follows:
→ Increasing demand of crude oil in non-OECD countries.
→ Increasing demand of natural gas.
→ Increasing shale gas consumption in USA, Canada, Europe and
Australia.
Increasing consumption of fossils will lead to more and more E&P
activities globally which is likely benefit the export focused companies
like MIIL
Strong Order Book in access of Rs 15 bn:
MIIL has the strong order book position in excess of ` 15 bn, executable
within 6-9 months.
60% orders are for LSAW pipes and the rest are for HSAW.
Majority of the order book consists of export orders (about 70-80%).
Outlook & Recommendation
At the current market price of ` 112, the stock is trading at a P/E of 6.5x,
5.2x and 4.2x of FY12E, FY13E and FY14E earnings of ` 17.2, ` 21.6
and ` 26.5 per share respectively.
We recommend BUY rating on the stock with a target price of ` 159/-
(42% upside) at the P/E of 6x on FY14E earnings over the period of 18
months.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Company Profile
Incorporated in 1988, Man Industries (India) Ltd’s (MIIL) business line includes
manufacturing and coating of large diameter SAW pipes. The company’s state-ofthe-
art manufacturing units are situated at Pithampur, Madhya Pradesh and Anjar,
Gujarat. Both the plants are equipped with all types of anti corrosion coating
facilities. Majority of its revenues are generated through exports.
Investment Rationale
Well positioned to cater export led growth:
Pipe manufacturing requires quality assurance certificates from various
agencies, both national and international such as KVQA, API, BIS and so
on. MIIL has all these certificates in place.
MIIL has also undergone a technology based MoU with CHR Haeusler
AG of Switzerland, which assures high quality production output from
the company’s plants.
MIIL maintains cordial relationship with its clients in the countries like
USA, Iran, Egypt, Abu Dhabi, UAE, Qatar, Iraq and so on by providing
quality pipes in time which helps them to garner repeat orders.
Exploiting rising demand of global oil & gas consumption:
The oil and gas sector is the primary end user and the biggest demand
driver for pipes historically. Higher oil and gas prices typically drive
exploration capex which drives the momentum for drilling activities and
oil and gas transportation from the oil well to the end consumer. Demand
drivers for the industry are as follows:
→ Increasing demand of crude oil in non-OECD countries.
→ Increasing demand of natural gas.
→ Increasing shale gas consumption in USA, Canada, Europe and
Australia.
Increasing consumption of fossils will lead to more and more E&P
activities globally which is likely benefit the export focused companies
like MIIL
Strong Order Book in access of Rs 15 bn:
MIIL has the strong order book position in excess of ` 15 bn, executable
within 6-9 months.
60% orders are for LSAW pipes and the rest are for HSAW.
Majority of the order book consists of export orders (about 70-80%).
Outlook & Recommendation
At the current market price of ` 112, the stock is trading at a P/E of 6.5x,
5.2x and 4.2x of FY12E, FY13E and FY14E earnings of ` 17.2, ` 21.6
and ` 26.5 per share respectively.
We recommend BUY rating on the stock with a target price of ` 159/-
(42% upside) at the P/E of 6x on FY14E earnings over the period of 18
months.
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