Man Industries: PAT growth of 71% & Revenue growth of 53% in Q1-25 at a PE of 26
Man Industries: PAT growth of 71% & Revenue growth of 53% in Q1-25 at a PE of 26
Conservative guidance of revenue growth of 20-25% with EBITDA growth of 29%-34% in FY25. FY24-26 guidance of 26% Revenue CAGR & 31% EBITDA CAGR. At a price to book of 2.1
1. Manufacturer of large diameter carbon steel line pipes (LSAW, HSAW & ERW)
mangroup.com | NSE : MANINDS
The company has three state-of-the-art manufacturing facilities with 2 facility located in Anjar, Gujarat having 2 LSAW line Pipe units & 2 HSAW Line Pipe units, 1 ERW unit and also for various types of Anti-Corrosion Coating Systems and 1 facility in Pithampur, Madhya Pradesh, having a total installed capacity of over 1.18 Mn+ MTPA.
Undertaking capex to enter manufacturing of Stainless Steel pipes.
2. Weak FY21-24: Flat PAT with revenue growth in FY24
3. Weak FY23: PAT down 33% and Revenue up 4% YoY
4. Strong FY-24: PAT up 57% & Revenue up 41% YoY
5. Strong Q1-25: PAT up 71% & Revenue up 53% YoY
6. Business metrics: Weak but improving return ratios
7. Outlook: 26% Revenue CAGR & 31% EBITDA CAGR for FY24-26
i. FY25: Revenue growth of 20-25%
But give or take from last year, we would be at a growth around 20%-25%.
This year also we are looking at Rs. 3,600-Rs. 3,800. We rather keep this conservative approach and over achievers would be better for the Company and shareholders.
ii. FY25: EBITDA growth of 29%-34%
With revenue growing by 20-25% in FY25 and delivering an EBITDA of 10%, implies EBITDA growth would be 29-34% over the EBITDA of Rs 293.2 cr in FY24. Q1-25 EBITDA was 7.7% and hence stronger performance needs to be delivered for the 10% traget to be met.
For the EBITDA margin, you can consider at around approximately 10% for this year
iii. FY24-26: 26% Revenue CAGR & 31% EBITDA CAGR
Revenue growing to Rs 5,000 cr by FY26 from Rs 3142.2 cr in FY24 implies a CAGR of 26%. EBITDA growing to Rs 500 cr by FY26 from Rs 293.2 cr in FY24 implies a CAGR of 31%.
For '25-'26, our top line will be approximately INR5,000 crores. And the EBITDA would stand at approximately 10% to 11% to around INR500 crores.
iv. Strong revenue visibility for FY25
Un-executed order book of approx. Rs. 4,000 Crores, scheduled to be executed within the next 6 to 12 months.
Expansion plan of setting up a new plant at Dammam, Saudi Arabia with an approx. cost of Rs 600 crores. This plant will include line pipe manufacturing and a coating facility, which will cater to Saudi Arabia’s growing demand
8. PAT growth of 71% & Revenue growth of 53% in Q1-25 at a PE of 26
9. So Wait and Watch
If I hold the stock then one may continue holding on to MANINDS.
A strong FY24, followed by an equally strong Q1-25 indicates that momentum is back in the business of MANINDS. Q1-25 execution provides confidence that the guidance for FY25 will be delivered.
Revenue visibility for MANINDS is strong given the un-executed order book of Rs 4,000 cr to be executed within the next 6 to 12 months.
MANINDS is providing a strong outlook for FY25 and FY25 with revenue targets of Rs 5,000 cr and EBITDA of Rs 500 cr.
New capacity expansion which could add potential revenue of Rs 3,000-4,000 cr within 12 months makes MANINDS quite attractive from a longer term perspective.
New plant at Dammam, Saudi Arabia with an approx. cost of Rs. 600 crores.
The potential would be between Rs. 3,000-Rs. 4,000 crore of topline
Completion time period is 12 months.
10. Or, join the ride
If I am looking to enter MANINDS then
MANINDS delivered a PAT growth of 71% and Revenue growth of 53% in Q1-25 at a PE of 26 which makes valuations quite reasonable.
MANINDS has a conservative guidance for a FY25 a revenue growth of 20-25% with EBITDA growth of 29-34% at a PE of 26 makes valuations reasonable from the medium term.
MANINDS guiding for a FY24-26 revenue CAGR of 26% & EBITDA CAGR of 31% at a PE of 26 makes valuations attractive from a long term perspective.
MANINDS is available at a market cap to sales of less than 1 ( market cap of Rs 2,894 cr against an FY25 expected revenue of Rs 3,770+ cr)
MANINDS is available at a price to book of 2.1 which makes the valuations quite reasonable.
Previous coverage of MANINDS
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