Synopsis:
Choice Institutional Equities has recommended a “Buy” rating on Man Industries (India) Limited with a target price of ₹600, suggesting an upside potential of 41.11 percent.
This Ashish Kacholia Stock, engaged in the business of manufacturing, processing, and trading of submerged arc welded (SAW) pipes and steel products, is in focus after Choice Institutional Equities gave a target of Rs. 600, which has an upside potential of 41.11 percent.
With a market capitalization of Rs. 3,231.79 crores, the share of Man Industries (India) Limited has reached an intraday high of Rs. 439.60 per equity share, rising nearly 3.39 percent from its previous day’s close price of Rs. 425.20. Since then, the stock has retreated and closed at Rs. 446.70 per equity share.
What is the News?
Choice Institutional Equities, a prominent brokerage firm, has recommended a “Buy” call on Man Industries (India) Limited with a target price of Rs. 600 per share, indicating an upside potential of 41.11 percent from its previous day’s close price of Rs. 425.20.
Rationale for Target
Man Industries Limited’s target price is supported by strong growth visibility from upcoming capacity additions, including the 20 KT stainless-steel pipes facility in Jammu and the 300 KT H-SAW pipes plant in Saudi Arabia, which are set to materially boost revenues from FY27E. A robust Rs. 47.5Bn order book and Rs. 150Bn bid pipeline further reinforces confidence in sustained earnings momentum over FY25-28E.
The company’s profitability is set to improve, with EBITDA margins expected to rise by about 728 bps over FY25-28E. In addition, the planned sale of its Navi Mumbai land may bring in around Rs. 7.5Bn over 5-6 years, strengthening cash flows and supporting expansion.
Management Guidance
Man Industries (India) Limited’s management expects the company to grow strongly in the coming years. They have reaffirmed their target of around 20 percent revenue growth for FY26 and believe that the second half of FY26 will be the best ever, with expected revenue of about Rs. 22 billion.
Looking ahead, the company is aiming for Rs. 70 billion in revenue in FY27, supported by new capacity expansions that will help boost production and meet higher demand.
Order Book
As of June 30, 2025, Man Industries (India) Limited has a strong order book worth Rs. 47.5 billion and is also actively bidding for new projects worth around Rs. 150 billion. Most of the company’s business comes from overseas markets, with exports contributing about 80-90 percent of its total revenue and making up a similar share of its order book. The company’s bid pipeline is also large and diverse, covering sectors such as oil & gas, water transmission, and specialised coated pipe projects.
Capex of Saudi Arabia and Jammu
Man Industries (India) Limited is setting up two new plants, one in Saudi Arabia, expected to start operations in Q4 FY26, and another in Jammu, scheduled to begin on April 1, 2026. Both facilities will be fully operational by the end of FY26 and will contribute to revenues from FY27 onward.
Together, these new plants have the potential to generate about Rs. 25 billion in revenue in FY27, with around Rs. 20 billion coming from the Saudi plant and Rs. 5 billion from the Jammu unit. Profit margins are also expected to be healthy, with EBITDA margins of 12-15 percent in Saudi Arabia and 18-22 percent in Jammu.
Overall, these expansions are projected to lift FY27 EBITDA to over Rs. 8 billion and support the company’s goal of reaching Rs. 70 billion in revenue with an estimated blended margin of about 13 percent.
Company Overview
Man Industries (India) Limited is a well-established Indian company specializing in the manufacture of steel pipes and related products. The company is engaged in producing high-quality submerged arc welded (SAW) pipes, catering to critical industries like oil & gas, petrochemicals, fertilizers, water supply, agriculture, and construction.
The company offers a diverse product range, including longitudinal submerged arc welded (LSAW) pipes and helical submerged arc welded (HSAW) pipes. These pipes are designed for transporting liquids and gases under high pressure and harsh environmental conditions.
Additionally, Man Industries provides coating and lining services to improve the durability and corrosion resistance of its products. These services make their pipes suitable for a variety of industrial applications, including pipelines, infrastructure projects, and high-pressure operations.
Shareholding Pattern
In September 2025, Man Industries (India) Limited had a majority stake held by the promoters at 43.21 percent, foreign institutional investors at 2.32 percent, domestic institutional investors at 1.68 percent, and the public at 52.77 percent. Ace investor Ashish Kacholia holds a 3.04 percent stake in Man Industries (India) Limited, valued at Rs. 98.1 crores, consisting of 22.77 lakh shares.
Recent quarter results
Coming into financial highlights, Man Industries (India) Limited’s revenue has increased from Rs. 806 crore in Q2 FY25 to Rs. 834 crore in Q2 FY26, which has grown by 3.47 percent. The net profit has also grown by 15.63 percent from Rs. 32 crore in Q2 FY25 to Rs. 37 crore in Q2 FY26. Man Industries (India) Limited’s revenue and net profit have grown at a CAGR of 14.78 percent and 22.26 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 16 percent and 10 percent, respectively. Man Industries (India) Limited has an earnings per share (EPS) of Rs. 24.8, and its debt-to-equity ratio is 0.29x.
Written By – Nikhil Naik
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