Man Industries share price surged over 10% on Monday’s early trade to touch a 52-week high following the announcement by the company that it had secured its largest-ever single order of over ₹1,850 crore for pipes from Oil & Gas International Company. Man Industries share price today opened at ₹502 apiece on BSE; the stock touched an intraday high of ₹513 and an intraday low of ₹482.70.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, highlighted that the stock has seen a gap- up opening; however, from the initial highs, prices have dipped a bit, trimming gains. Technically, prices gave a bullish breakout last week, breaking beyond 450, and positive momentum is expected to continue in the near term with a potential target of 530–550. The bullish gap of today around 475, followed by 450, is seen as immediate support and a buying zone.
The Oil & Gas International Company awarded Man Industries the contract to supply high value-added line pipes of API 5L grade for the massive offshore project, according to the company’s exchange filing. The order is anticipated to be delivered during the next 12 to 18 months. With this, Man Industries has around ₹4,000 crore in unexecuted orders.
“This order reflects the robust business environment and showcases the trust of the customers they have in the Company’s technological and executional capabilities,” the firm said in its filing.
The manufacturer of steel pipes announced in the last week of May that it had received fresh orders from both local and foreign markets totaling ₹490 crore. The business added in a statement that, with this new success, the order book stands at almost ₹2,600 crore.
Multiple grades of steel pipes were ordered for use in domestic and international oil and gas transportation as well as water transport projects.
Recently, brokerage house Emkay Research initiated coverage on Man Industries with a ‘Buy’ rating and a target price of ₹500, which it has surpassed.
Man Industries’ share price has doubled in a year, according to the brokerage, which is indicative of stronger business fundamentals and more visibility into the company’s planned development plans being carried out. Additionally, the industry tailwind of rising pipe demand as well as peer capacity expansion has given important insight into Man’s path-charting similarity.
“We reckon the optimism around such tailwind and growth aspirations are mostly in the price = ‘potential’. We think the stock is yet to factor in project execution hereon which is expected to double the group’s revenue in 3-4 years = ‘delivery’. This transition from the ‘potential’ to the ‘delivery’ phase is likely to create meaningful shareholder value,” the brokerage said.
Trendlyne data shows that Man Industries’ share price has increased by approximately 250% in only a single year.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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HomeMarketsStock MarketsMan Industries share price hits a 52-week high after securing its largest single order worth ₹1,850 crore
