Man Industries share price jumps 7% as Emkay Global initiates coverage with ‘Buy’ rating, sees 27% upside

Emkay Global assigned a ‘Buy’ standing to Man Industries (India) shares with a people terms of ₹500 per share, implying a 27% upside.

Man Industries banal terms has much than doubled wrong 1 year, reflecting improved concern fundamentals arsenic good arsenic greater visibility connected execution of its announced enlargement plans. Also, manufacture tailwinds successful the signifier of request maturation for pipes arsenic good arsenic capableness maturation by peers person provided meaningful clarity connected Man Industries charting a akin path, analysts said.

Also Read: Jio tariff hike impact: Reliance, Bharti Airtel jump, Vodafone Idea stock falls 2.5%

“We reckon the optimism astir specified tailwind and maturation aspirations are mostly successful the terms = ‘potential’. We deliberation the banal is yet to origin successful task execution hereon which is expected to treble the group’s gross successful 3-4 years = ‘delivery’. This modulation from the ‘potential’ to the ‘delivery’ signifier is apt to make meaningful shareholder value," said Amit Lahoti, Senior Research Analyst astatine Emkay Global Financial Services.

The brokerage steadfast expects the company’s borderline to grow to 11.1% successful FY27E from 9.2% successful FY24, with introduction into the high-margin stainless alloy business. It sees important betterment successful instrumentality ratios. 

Also Read: BHEL banal soars 4% aft institution secures ₹13,300 crore thermal powerfulness project

“Existing concern generates mid-cycle ROE of 9-10%. We estimation an incremental ROE publication from the Saudi enlargement astatine 4.8% and stainless alloy astatine 3.9%; this would instrumentality radical ROE to 17.4% and 21.0% successful FY27E and FY28E. We judge the marketplace prefers taking a de-risking attack to the company’s task execution, with the adjacent limb of banal re-rating apt to beryllium accompanied by advancement connected project," said Lahoti.

The enactment pipes assemblage is trading astatine 12.9x earnings, 8.2x EV/EBITDA, and is generating an mean ROE of 15.8% for FY25E. Though Man Industries is trading astatine a higher P/E of 21.1x, the brokerage sees valuation comfortableness astatine 8.3x connected FY27E earnings. 

Man Industries stock terms has surged much than 20% successful 1 period and the banal is up 46% year-to-date (YTD). Man Industries shares person fixed multibagger returns of implicit 165% successful 1 year. 

At 10:25 am, Man Industries shares were trading 5.55% higher astatine ₹416.75 apiece connected the BSE.

Read each Stock Market News Updates here

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

3.6 Crore Indians visited successful a azygous time choosing america arsenic India's undisputed level for General Election Results. Explore the latest updates here!

Published: 28 Jun 2024, 10:28 AM IST