Buy Man Industries Ltd. for the Target Rs.690 by Choice Institutional Equities
Key Conference Call Highlights
Order Book and Bid Pipeline
* As of March 31, 2026, order book stood at INR 30.0 Bn (vs. ~40.0 Bn in Q3FY26), to be executed in 6 to 12 months
* Bid Pipeline: Strong active pipeline, INR 160 Bn across oil & gas, water transmission and specialised coated pipes
Guidance
* The management has guided INR 50–55 Bn of revenue for FY27E, INR ~40 Bn from India and the rest from its Saudi business
* The Management stated that INR 15,000 Mn of revenue will be generated from National pipe company with >15% margin
* Expecting EBITDA margin at 13–15% level with improved PAT margin over the next 3–4 years
Monetisation of Non-core Assets (Marino Shelters – Real Estate)
* Marino Shelters real estate project, in partnership with Paradise Group, is slated for launch in March 25 and is expected to generate INR 8,000–9,000 Mn (as 30% stake) in revenue with INR 700–900 Mn profits in the next 3–5 years
New Capex – Saudi Arabia and Jammu
* The Saudi plant has strategically transitioned to manufacturing state-ofthe-art 3LP (Three-Layer Polyethylene) external and internal coating solutions, aimed at catering to the Kingdom’s growing demand for coated pipelines
* MAN incurred a capex of INR 3,400 Mn in FY26. For FY27E, consolidated capex is guided at approximately INR 5,800 Mn, includes the completion of the Jammu stainless steel plant (INR ~2,000 Mn) and the Dammam coating facility in Saudi Arabia (USD 40 Mn / INR ~3,800 Mn), both of which are targeted for commissioning in FY27E
Others
* Total capacity stood at 1.6 Mn MTPA by end of FY26 including National Pipe Company (NPC) plant
* Forex Loss in this quarter stands at INR 250 Mn
* Other expenses were higher in this quarter as MAN changed business model from FOB (Free On Board) to DDP (Delivered Duty Paid) and the higher other cost will be passed on to customers
* 70% of the volume has been shifted to DDP
Strategic International Acquisition – NPC:
* MAN Industries acquired Saudi Arabia-based National Pipe Company (NPC) for USD 102 Mn (INR 10 Bn), a landmark deal which expands its scale and global presence
* The acquisition was completed at an attractive 1.5x EV/EBITDA, well below Saudi peers’ 7–10x valuation. NPC is a profitable, debt-free business with 430,000 TPA capacity, a USD-120 Mn order book and USD 83 Mn in cash and liquid assets
* The deal was funded through USD 70 Mn local Saudi debt and USD 32 Mn internal accruals, with no direct debt added to the Indian standalone balance sheet
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