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, coated pipes and power.
At the CMP of INR307.35, the stock is trading at 21.9x its FY15E EPS of INR14.00. We expect that the revival in the company is very much on the cards in the coming days which compel us to assign a higher P/E multiple of 25.00x for FY15E to arrive at a target price of INR350 which shows an upside potential of ~14percent hence making the scrip an attractive buy.
Regards,
Team Microsec Research
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