Man Industries (BSE Code 513269) with face value of Rs 5 is currently tradLa ing at Rs 52.30 with a 52 week high/low ofRs 60.9121.5. Man Industries is a
part of the Man Group (UK), and opetates in the two segments of manufacturing pipes and construction. The company produces and exports latge diameter carbon steel line pipes for various high pressure transmission applications for gas, crude oil, petrochemical products and potable water.
In Q2FY10 the company's sales declined by 17.6 per cent and were to the tune ofRs 310 crore as against Rs 376.5 crore posted last year for the same period. The profit figure for the company was hammered badly and was down by 71 per cent on a y-o-y basis. The company posted profit of Rs 3.1 crore against Rs 10.8 crore posted in Q2FY09. Going forward, we feel that the company's pipeline business is very much linked to growth in exploration and production (E&P) activities in the domestic and international markets, which in turn is being driven forward by strong crude oil prices.
At the end of August 2009, the order book of the company was at Rs 2,500 crore which is 1.3 times of its FY09 sales, thus providing good earning visibility. The company's foray into real estate is managed by its subsidiary, Man Infra, which is currently executing two commercial projects at Bandra and Vile Parle in Mumbai and a residential cum-commercial project at Neru!' The current share price of the company discounts its last 12-month earnings by 9.9 times. Looking the growth prospect of the company, which will take 12-18 months to unlock, we advise you to hold the scrip.
part of the Man Group (UK), and opetates in the two segments of manufacturing pipes and construction. The company produces and exports latge diameter carbon steel line pipes for various high pressure transmission applications for gas, crude oil, petrochemical products and potable water.
In Q2FY10 the company's sales declined by 17.6 per cent and were to the tune ofRs 310 crore as against Rs 376.5 crore posted last year for the same period. The profit figure for the company was hammered badly and was down by 71 per cent on a y-o-y basis. The company posted profit of Rs 3.1 crore against Rs 10.8 crore posted in Q2FY09. Going forward, we feel that the company's pipeline business is very much linked to growth in exploration and production (E&P) activities in the domestic and international markets, which in turn is being driven forward by strong crude oil prices.
At the end of August 2009, the order book of the company was at Rs 2,500 crore which is 1.3 times of its FY09 sales, thus providing good earning visibility. The company's foray into real estate is managed by its subsidiary, Man Infra, which is currently executing two commercial projects at Bandra and Vile Parle in Mumbai and a residential cum-commercial project at Neru!' The current share price of the company discounts its last 12-month earnings by 9.9 times. Looking the growth prospect of the company, which will take 12-18 months to unlock, we advise you to hold the scrip.
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