Ashish Kacholia’s Multibagger Pipes Manufacturing Stock With Rs 2,900 Crore Order Book: This Small-Cap Stock Monetises Rs 720 Crore Asset While Expanding Rs 1,150 Crore Capacity in Two Locations
With a PE ratio of 16.7x, the company trades at a discount compared to the industry PE of 22.9x. The company has ROCE of 14.4 per cent and ROE of 8.07 per cent.
Man Industries (India) Limited has announced a significant monetisation initiative through its wholly-owned subsidiary, Merino Shelters Private Limited (MSPL). The subsidiary has entered into a Deed of Assignment with Paradise Green-Spaces LLP for a prime 6-acre land parcel located opposite D.Y. Patil Stadium in Navi Mumbai. This strategic move is valued at approximately Rs 720 crore and is expected to unfold over a period of 5-6 years. The upfront payment of Rs 70 crore will be complemented by the company receiving 30 per cent of the developed property's area, equivalent to approximately 4,50,000 sq. ft. of RERA carpet area, which holds a monetising value of Rs 650-700 crore.
This initiative is part of Man Industries' broader strategy to monetise non-core assets and focus on its core line pipe business, supporting ongoing and future expansion plans. Managing Director Nikhil Mansukhani stated, 'This deal acts as a key stepping stone, as management intends to monetise its non-core assets and focus on strengthening its core line pipe business and support its ongoing and future expansion plans like getting into high-value segments and entry into new geographies.'
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Man Industries Ltd. is a prominent player in the manufacturing and export of large-diameter carbon steel line pipes, with a total installed capacity of 1 million tonnes. The company specialises in LSAW and HSAW pipes, catering to high-pressure transmission applications across oil and gas, water supply, and structural industries. Its product portfolio includes L-SAW, H-SAW, API-ERW, and Non API-ERW pipes, serving diverse sectors such as chemical, defence, and food processing.
With manufacturing facilities in Gujarat and Madhya Pradesh, the company recently expanded its capacity by inaugurating a new Spiral Mill and Polyurethane Coating Facility, enhancing its production capabilities. Man Industries is also undertaking a Greenfield expansion in Jammu and a Line Pipe and Coating Mill expansion in Saudi Arabia, with a combined CAPEX of Rs 1,100-1,150 crore. The company boasts a strong order book of Rs 2,900 crore and has set a revenue guidance of Rs 3,300 crore for FY '25. Its clientele includes major domestic and international players like GAIL, IOCL, Reliance Industries, Hyundai Engineering, and Shell Global Solutions.
As of April 01, 2025, the current stock price of Man Industries is Rs 282.45. The stock's 52-week high is Rs 492.45, and its 52-week low is Rs 210.55. Man Industries has a market capitalisation of Rs 1,726 crore. The company has delivered a 1-year return of -25.77 per cent and a 3-year return of 160.05 per cent. Its Price-Earnings (PE) Ratio stands at 15.81. Major public shareholders include Vikas Vijaykumar Khemani with 2.53 per cent, RBA and Finance Investment Co. with 2.10 per cent, Ashish Kacholia with 2.10 per cent, Hiten Dilip Bhatia with 1.53 per cent, and The Court Receiver High Court Bombay with 1.50 per cent.
In the Quarterly Results of December 2024, the company reported revenue of Rs 731.94 crore, declining by 12.13 per cent year-on-year and 9.21 per cent quarter-on-quarter. Net profit stood at Rs 34.12 crore, reflecting an increase of 11.50 per cent year-on-year and 7.09 per cent quarter-on-quarter. The net profit margin for the quarter was 4.66 per cent, compared to 3.95 per cent in September 2024 and 3.67 per cent in December 2023.
For the full financial year 2024, revenue was Rs 3,142.18 crore, marking a growth of 40.82 per cent compared to Rs 2,231.34 crore in FY23. Net profit increased to Rs 109.16 crore, registering a growth of 89.54 per cent from Rs 53.09 crore in the previous year. The net profit margin improved to 1.69 per cent in FY24 from 1.26 per cent in FY23.
With a PE ratio of 16.7x, the company trades at a discount compared to the industry PE of 22.9x. The company has ROCE of 14.4 per cent and ROE of 8.07 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.