Man Industries saw a significant surge in its share price on Monday, rising over 10% in early trade and touching a 52-week high. This impressive performance followed the company’s announcement of securing its largest-ever single order, valued at over ₹1,850 crore, for pipes from Oil & Gas International Company. The stock opened at ₹502 apiece on the BSE, and it quickly rose to an intraday high of ₹513 before dipping to a low of ₹482.70.
Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, provided insight into the stock’s performance. He noted that the stock experienced a gap-up opening but saw some initial gains being trimmed. Despite this, Bhosale emphasized that the stock had given a bullish breakout last week by breaking beyond the ₹450 mark.
He anticipates that this positive momentum will continue in the near term, with the stock potentially reaching targets between ₹530 and ₹550. Bhosale also identified the bullish gap around ₹475, followed by ₹450, as immediate support levels and a buying zone.
The substantial order from Oil & Gas International Company involves the supply of high value-added line pipes of API 5L grade for a major offshore project. According to the company’s exchange filing, the order is expected to be delivered within the next 12 to 18 months. This latest order brings Man Industries’ total unexecuted orders to around ₹4,000 crore. The company highlighted that this order reflects the robust business environment and showcases the trust that customers have in its technological and execution capabilities.
In the last week of May, Man Industries had announced receiving fresh orders worth ₹490 crore from both local and foreign markets. These orders included multiple grades of steel pipes for domestic and international oil and gas transportation as well as water transport projects. This influx of orders has significantly bolstered the company’s order book, which now stands at almost ₹2,600 crore.
Brokerage house Emkay Research recently initiated coverage on Man Industries with a ‘Buy‘ rating and set a target price of ₹500. This target has already been surpassed, indicating stronger business fundamentals and increased visibility into the company’s planned development projects. The brokerage noted that Man Industries’ share price has doubled over the past year, which reflects the company’s positive trajectory and the industry’s growing demand for pipes. Additionally, the expansion of peer capacities has provided important insights into the company’s path forward.
Emkay Research also pointed out that while there is optimism around the industry’s tailwinds and the company’s growth aspirations, the stock has yet to fully factor in the execution of these projects. The transition from the potential phase to the delivery phase is expected to double the group’s revenue in the next three to four years, which could create meaningful shareholder value.
Trendlyne data shows that Man Industries’ share price has increased by approximately 250% in the past year. This remarkable performance underscores the company’s strong market position and its ability to capitalize on industry trends. As the company continues to secure significant orders and execute its projects effectively, it is well-positioned for sustained growth and success.
Man Industries’ recent achievements and robust order book have driven significant investor confidence, resulting in a substantial rise in its share price. With strong business fundamentals and a positive outlook for the industry, the company is poised for continued growth and value creation for its shareholders.
