1. At a Glance
Man Industries is one of India’s largest manufacturers of large-diameter carbon steel pipes, with 1 million tonnes of installed capacity. It caters to oil & gas, water supply, and structural industries — basically, if it flows, they’ve piped it. With a ₹3,200 Cr order book, recent forays into Saudi Arabia, and TTM PAT growth of 43%, the company’s momentum is solid. But a rising debt pile (₹476 Cr) and stretched working capital cycle remind investors that steel isn’t the only thing under pressure here.
2. Introduction
Founded three decades ago, Man Industries (India) Ltd has become a key player in the pipe manufacturing sector, producing both LSAW and HSAW pipes. Its client list includes big oil & gas companies, water transmission authorities, and EPC contractors.
The company’s stock has been on a tear over 5 years (CAGR 56%) and 3 years (CAGR 73%), but the last year’s gain was just 3% — suggesting that valuations are catching their breath while the company pushes ahead with expansions. With greenfield projects in Saudi Arabia and Jammu underway, management is betting on global growth.
3. Business Model (WTF Do They Even Do?)
Man Industries earns by manufacturing large-diameter steel line pipes for high-pressure applications.
Revenue streams:
- Oil & Gas Transmission – Pipes for crude, natural gas,
- and refined products.
- Water Supply & Irrigation – Long-distance bulk water transport.
- Structural & Industrial Uses – Infrastructure projects needing heavy-duty steel pipes.
Primary business is project-based supply, meaning revenues depend heavily on tender wins and execution schedules. Margins swing based on raw material prices and logistics costs.
4. Financials Overview
TTM Figures:
- Revenue: ₹3,499 Cr
- Net Profit: ₹162 Cr
- EBITDA: ₹313 Cr
- EPS: ₹24.83
- ROE: 10.2% | ROCE: 16.2%
- Debt: ₹476 Cr
Key Trends:
- Sales CAGR (5Y): 15%
- Profit CAGR (5Y): 22%
- OPM stable at ~9% — good for a capital-intensive, commodity-linked business.
- Debt up from ₹326 Cr (FY24) to ₹476 Cr (FY25) — expansion-driven.
Fresh P/E Calculation:
Q1 FY26 EPS = ₹4.11
Annualized EPS = ₹16.44
At ₹443 → P/E = 26.9x
5. Valuation (Fair Value Range)
| Method | Metric Used | Fair Value (₹) |
|---|---|---|
| P/E Multiple | Industry median 24.65 × EPS ₹16.44 | 405 |
| EV/EBITDA | EV/EBITDA 9× EBITDA ₹313 Cr | 470 |
| DCF | 8% growth, 12% discount rate | 430 |
