We rate Maharashtra Seamless Ltd. (MSL) a BUY. Our rating underpins the company’s robust business model complimented with increasing exports and other strong client base. MSL is one of the flagship company of D.P. Jindal Group specializes in providing a whole range of high-class, customizable & innovative seamless pipes and tubes. It also diversifies its foray into ERW and coated pipes.
At the CMP of INR336.00, the stock is trading at 6.20x its FY14E EPS of INR54.20. We assigned a P/E multiple of 8.00x for FY14E arrived at a target price of INR433.60 which shows an upside potential of ~29percent hence making the scrip an attractive buy.
Regards,
Team Microsec Research
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