Multibagger Man Industries share price corrects 13% since July highs: Should you Buy or Sell this Ashish Kacholia stock?

Stock Market today: Multibagger Man Industries (India Ltd share price has risen 161% in a year and 973% in 5 years. The Man Industries share price however has corrected around 13% since its July closing highs . Should you Buy, sell or Hold the stock where Investors as Ashish Kacholia and Vikas Khemani Hold stakes.

Ace investors Ashish Kacholia and Vikas Khemani Hold stakes in the Man Industries.

As per the shareholding pattern of Man Industries (India) Ltd for the Q1FY24 period, Ashish Kacholia owns 13,62,395 shares of this Multibagger stock, which is 2.10 percent of the total paid-up capital of this small-cap company.

Vikas Khemani Hold around 2.53 % stake in the Man Industries stock.

Q1 Results

The Man Industries share price has corrected with Q1 FY25 performance remaining slightly softer compared to previous quarter even though on year-on-year basis the performance remained strong

The revenue from operations for Man Industries at ₹748.7 while grew 52.7% year on year, it declined 7.4% sequentially. The Earnings Before Interest Tax Depreciation and amortisation (Ebitda) at ₹58 Crore though grew 14.9% year on year, nevertheless declined 20.4% sequentially. The net profit thereby at ₹19.1 Crore that grew 70% year on year but decline 20.7% sequentially.

The Q1 is slightly remains soft on sequential basis. The higher proportion of contributions from water segment of business, which is low margin business also impacted

The company however expects to maintain its growth and earnings

Nikhil Mansukhani Managing Director of Man Industries said that he expects the growth rate of 25-30% over next 2-3 years, helped by Saudi and Jammu expansions . Saudi operations will also support margins.

Order Book

Man Industries (India) Ltd. has an unexecuted order book of approx. Rs. 4,000 Crores, which is to see execution over the next 6 to 12 months. This strong order book may grow further looking at the pipeline of orders where the company has been bidding.

The order book also reflects the demand for company’s product and operational capacity. The company is one of the key manufacturer and exporter of large diameter carbon steel line pipes (LSAW, HSAW and ERW) which are used for various high pressure transmission applications for oil & gas industry, petrochemicals, water, dredging & fertilizers, hydro-carbon and City Gas distribution Sector.

Oil and Gas sector is seeing stronger demand both from India and Gulf countries. Newer Energy segment holds promises highlighted Mansukhani.

Water segment is doing well but orders are through EPC and also slightly lower in margins.

Expansions to drive growth

Man Industries (India) Ltd recently has announced its expansion plan of setting up a new plant at Dammam, Saudi Arabia with an approx. cost of ₹600 crores. This plant will include line pipe manufacturing and a coating facility, which will cater to Saudi Arabia’s growing demand.

Another expansion plan is being undertaken in Jammu and will come onstream and start contributing from FY26.

Further the ERW expansion bode well as smaller diameter pipes are required for City Gas Distribution , which is growing at fast pace.

Oil & Gas segment and expansion will be growth drivers over time.

Leverage-

The company has transitioned it balance sheet from a Net Debt of Rs. 125.1 Crores as of FY23 to a Net Cash position of Rs. 174.4 Crores as on 31st March FY24. This significant improvement in financial health underscores effective financial and liquidity management.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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