MAN INDUSTRIES (INDIA) LTD - Quantamental Equity Research

Quantamental Equity Research on MAN INDUSTRIES (INDIA) LTD | Release: 08 Dec 2018 18:34:25 UTC+05:30 | Reporting Currency: INR | Trading Currency: INR | Exchange:NSE/BSE NSE CODE:MANINDS and BSE CODE:513269
Last Close:  INR 71.7
Fair Value:  INR 85.35
Est. Price by Mar 19:  INR 80.7
Market Capitalization (INR Crs):  409.41
Industry:  Construction & Engineering
Rating:  BUY
Upside:  19%
Company Profile
Man Industries (India) is engaged in the business of manufacturing, processing and trading of submerged arc welded pipes & steel products.
Growth Per Share
Particulars 1-Year 3-Year 5-Year  
Revenue % 48% 17% 5%  
EBIT % 73% 25% -26%  
Earnings % 93% 17% -38%  
Book Value %  9% 34% -8%  
Stock Total Return %  190% 141% 33%  
Share holding pattern
Particulars %age   
(A) Promoter & Promoter Group 42.69  
(B) FII/FPI 4.87  
(C) DII/Insurance Companies 0.61  
(D) Public holding < 2 lakhs of cap. 22.81  
(E) Others 29.02  
Grand Total 100.00  
Fundamentals (Historical and Estimated)
Particulars Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18  Mar-19 E   Mar-20 E   Mar-21 E   Mar-22 E   Mar-23 E   
Price 73 73 103 103 66 57 69 47 137 81 92 88 95 92  
Return on Equity 14% 17% 16% 14% 1% 11% 15% 5% 10% 11% 11% 10% 10% 9%  
Price to Earning  5.8 4.4 5.6 6.1 42.1 6.1 4.6 8.3 12.4 6.0 6.0 6.0 6.0 6.0  
EVTI 0.4 0.8 0.4 0.8 0.8 0.5 0.4 0.5 0.6 0.3 0.3 0.3 0.3 0.2  
EVTIFM 5.8 4.4 5.6 6.1 42.1 6.1 4.6 8.3 12.4 6.0 6.0 6.0 6.0 6.0  
Price to Book Value 0.8 0.7 0.9 0.9 0.6 0.7 0.7 0.4 1.2 0.6 0.7 0.6 0.6 0.5  
Debt to Equity  0.7 2.0 0.6 0.8 0.7 0.9 0.6 0.7 0.6 0.8 0.8 0.8 0.7 0.6  
Dividend Yield 2% 3% 2% 2% 2% 3% 2% 3% 1% 2% 2% 2% 2% 2%  
Cash Flow to Firm 22% -45% 133% -24% 27% 56% 26% -5% 19% -9% 5% 15% 14% 23%  
Detailed Estimates
Title Mar-18 Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E  
Sales       1,572.38       2,659.38       3,191.26       3,510.38       3,861.42       4,054.49  
EBITDA          176.76          225.62          254.79          262.72          269.68          262.89  
EBIT          137.56          159.32          199.00          204.61          214.97          211.38  
PBT            94.54          116.30          133.07          127.06          137.04          132.43  
NPAT            62.86            76.77            87.84            83.87            90.46            87.41  
Price to Earning             12.44              6.00              6.00              6.00              6.00              6.00  
Price to Book Value              1.20              0.64              0.66              0.58              0.57              0.51  
Debt to Equity               0.57              0.80              0.85              0.78              0.73              0.61  
Return on Equity              0.10              0.11              0.11              0.10              0.10              0.09  
Enterprise Value to Total Income (EVTI)              0.63              0.33              0.33              0.29              0.28              0.24  
Enterprise Value to Total Income to Firm Margin(EVTIFM)            27.56            21.35            20.26            19.32            19.24            18.04  
Price or Est. Share Prices          136.90            80.70            92.35            88.20            95.15            91.95  
DISCOUNTED CASH FLOW
Title Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E  
PBT          116.30          133.07          127.06          137.04          132.43  
Interest            43.02            65.93            77.54            77.93            78.95  
Depreciation            66.30            55.79            58.11            54.71            51.52  
Cash Flow Before Tax          225.62          254.79          262.72          269.68          262.89  
Tax Rate            33.99            33.99            33.99            33.99            33.99  
Cash Flow After Tax          148.93          168.19          173.42          178.02          173.54  
Terminal Cash Flow                                                                                      -         1,257.14  
Total Cash Flow          148.93          168.19          173.42          178.02       1,430.68  
Present Value of Cash Flow       1,105.75  
Debt          618.57  
Value of Equity          487.18  
Fair Value Per Share            85.35  
Equity               409
Debt               374
Beta Take from Reuters 2.5
Risk Free Rate Prevailing Yield in India 7%
Market Risk Premium Assuming 8.82% premium for Equity Investments 7%
Interest Paid                 43
Tax Benefit                 14
Interest Net of Tax                 29
Debt               374
Cost of Debt 8%
Cost of Equity 26%
Debt Weight 48%
Equity Weight 52%
WACC 17%
Cash Flow of Mar-23 E          173.54
Growth -1.0%
Present Value of Terminal Cashflow       1,257.14
Peer Comparision
# Name CMP Rs. Mar Cap Rs.Cr.  B.V. Rs. Annualized ROE % ROCE % Latest EVTI Latest EVTIFM CMP / BV P/E Debt / Eq Div Yld % Growth Rate R % SGR % Ann Total Income Unpledged Prom Hold % PQEIOI QoQ Sales % Qtr Sales Var % QoQ Profits % Qtr Profit Var % Graham's Number Rs.
   1  JSW Steel           302.40          73,097          129.52            37.20            17.51              1.27            10.17              2.33              7.79              1.41              1.32            31.41            34.20          86,432            25.97                 36              5.03            25.01           -10.77          148.75          334.52
   2  Tata Steel           509.30          57,378          568.22            26.08            12.78              0.70              8.20              0.90              9.17              1.58              2.00            23.86            27.04       1,76,702            31.96                 23            15.10            34.13            61.14          191.02       1,397.74
   3  S A I L             51.00          21,066            89.22              7.90              2.66              0.96            16.48              0.57            10.97              1.27                  -                7.90              6.25          67,193            75.00                 44              5.10            22.77              2.45          338.49            97.34
   4  Jindal Stain.             33.95            1,627            50.21             -6.98            14.22              0.48            12.34              0.68              4.47              2.01                  -               -6.98             -6.00          12,142              9.41               170             -2.08            18.16         -140.11           -12.60            86.09
   5  Jindal Stain .Hi             86.95            2,051            59.17            23.01            23.73              0.49            11.15              1.47              5.64              2.23                  -              23.01            43.24            8,990              7.09                 47              4.51             -5.05           -22.41           -29.01          144.57
   6  Man Inds.             71.70               409          120.45            11.48            13.59              0.19              2.77              0.60              4.76              0.57              2.09              9.92              8.06            3,094            37.70                   9            26.88          182.36           -39.35            62.67          199.32

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