Maharashtra Seamless Ltd. share price target

Update Note

Maharashtra Seamless took 100% control over United Seamless Tubular Pvt Ltd (USTPL) on February 14, 2020 after the Supreme Court decision on January 22, 2020. USTPL has a capacity of 300000 tonnes per annum (TPA) in the size range of 4 to 14 diameter in various grades and wall thicknesses. The plant has Fine Quality Mill (FQM) manufacturing technology, which is supplied by Danielle, Italy. The company has indicated that USTPL will run on partial capacity after completion of trial run by September 2020. With this acquisition, MSL will have an additional...

Maharashtra Seamless reported a good set of operational numbers for Q3FY19 wherein topline and EBITDA came in higher than our expectations. However, reported PAT came in lower than our estimate on the back of muted other income...

Maharashtra Seamless reported a mixed set of Q2FY19 numbers. Wherein the topline was higher than estimates, profitability was lower than our estimates. The company reported a topline of | 703 crore (up 45.3% YoY, 15.7% QoQ) higher than our estimate of | 654.9 crore The increased raw material cost and a 30 days shutdown at company's Nagothane plant (thereby lower production) impacted the EBITDA. The EBITDA margin came in at 18.2% (vs. Q2FY18: 12.4%, Q1FY19: 23.7%, our estimate: 21.2%). The raw material cost (as a...

ICICI Securities Ltd | Retail Equity Research Healthy demand to boost pipes volume The Government of India's emphasis on initiatives like replacement of old oil & gas pipelines, pan-India gas pipeline connectivity, city gas distribution is likely to spur demand for pipes. First the anti-dumping duty...

ICICI Securities Ltd | Retail Equity Research Maharashtra Seamless reported healthy set of Q1FY19 numbers. The company reported seamless pipes sales volume of 65114 tonne (down 9% YoY, 10% QoQ). ERW pipe sales came in at 16056 tonne (up 34% YoY, 11% QoQ). Overall, the pipes sales volume came in at 81170 tonne (down 3% YoY, 7% QoQ) Topline for the quarter was at | 607.4 crore (up 35% YoY but down 4% QoQ), broadly in line with our estimate of | 630.4 crore...

Maharashtra Seamless reported a healthy set of Q4FY18 numbers. The performance came in higher than our estimates on all fronts. It was primarily driven by higher-than-expected realisations....

Maharashtra Seamless for Q3FY18 reported a mixed set of numbers. The topline came in above our estimates, while the EBITDA and PAT were below our estimates. The company reported a topline of |563.7...

Maharashtra Seamless Limited (MSL) reported standalone Q3FY18 sales at INR 564 cr up 47% YoY driven by strong growth in volumes of seamless tubes. Volumes in seamless tubes grew by 47% to...

first of their kind in India and have a technical tie-up with SMS MEER (earlier known as Mannesmann Demag) of Germany. The plant is strategically located in Nagothane, about 100 km from Mumbai Port. MSL has also set up a new state-of-the-art facility for manufacturing both drill pipes as well as casing, tubing and line pipes at Mangaon. Company has total installed capacity of 5.5 lakh tonnes of seamless pipes & tubes and 2 lakh tonnes of ERW pipes. Company derives 80% of revenue from seamless...

Maharashtra Seamless reported a subdued set of Q2FY18 numbers wherein the topline came in line with our estimate while EBITDA, EBITDA margin and PAT came in lower than our estimate. Total pipe volumes for the quarter were at 84087 tonnes (our estimate: 85375 tonnes). Seamless pipes sales volume was at 69152 tonnes (our estimate: 72785 tonnes) while ERW sales volumes were at 14935 tonnes (our estimate: 12500 tonnes) Total operating income for the quarter was at | 484 crore (up 7.5%...

Maharashtra Seamless (MSL) reported mixed results in Q2FY18. Whille net sales grew by 59% to INR 484cr on the back of strong growth in volumes, EBIDTA remained flat at INR 60cr on yoy basis.

MSL Q2FY18 PAT declined 12.5% YY despite significant growth in revenue due to execution of low margin legacy orders. EBITDA margin contracted YY due to 1/ booking of low margin legacy orders and 2/ high base of Q2FY17. We consider that this is a quarterly aberration and maintain our FY19 earnings estimate. We believe that MSL valuations can get rerated on back of strong growth in company's estimated consolidated profits through FY17-19E driven by 1) recovery in demand for seamless pipes in the domestic/international market and 2) imposition of anti-dumping duty on Chinese imports would lead to demand...

EBITDA came in at | 60.8 crore (up 108% YoY but down 15.8% QoQ), lower than our estimate of | 63.5 crore. The corresponding EBITDA margin for Q1FY18 was at 13.5%, lower than our estimate of 15.6% (Q4FY17 EBITDA margin: 16.0%, Q1FY17 EBITDA margin: 10.1%). During Q1FY18, other expenses (as a percentage of sales) increased 160 bps QoQ to 18.0% while raw material costs (as a percentage of...

Maharashtra Seamless reported a good set of Q4FY17 numbers wherein the topline and EBITDA both came in above our estimates The better-than-expected topline was driven by higher-than-expected sales volume of seamless pipes. The seamless pipes volume increased 26% YoY and 20% QoQ to 66595 tonne higher than our estimates of 58438 tonne. The ERW segment reported sales volume of 19230 tonne lower than our estimate of 21000 tonne. Total pipes volume during the quarter came in at 85825 tonne (up 22.3% YoY,...

Maharashtra Seamless (MSL) reported a good set of Q3FY17 numbers wherein topline, EBITDA both came in above our estimates. A better-than-expected topline was driven by higher-than-expected sales volume. The seamless pipes sales volume for the quarter came in at 55453 tonne (up 100.2% YoY, 28.2% QoQ) notably higher than our estimate of 44000 tonne. The ERW sales volume for the quarter came in at 21735 tonne (up 58.1% YoY, 23.6% QoQ) notably higher than our estimate of 17500 tonne. Total pipes sales volume came in at...

Maharashtra Seamless reported a good set of Q2FY17 numbers. The topline broadly came in line with our estimate while EBITDA and PAT came in higher than our estimate. The seamless pipes sales volume for the quarter came in at 43264 tonne (up 12.4% YoY, down 1.7% QoQ) marginally lower than our estimate of 46750 tonne. The ERW sales volume registered a healthy increase of 30.3% QoQ to ~17591 tonne, higher than our estimate of 15000 tonne. Total pipes sales volume came in at ~60855 tonne (our estimate: ~61750 tonne)...

For Q1FY17, Maharashtra Seamless reported a topline, EBIDTA and PAT below our estimate primarily on account of muted sales volume.Seamless pipes sales volume came in at ~44000 tonne (our estimate: 44688 tonne) while ERW sales volume came in at ~13500 tonne (our estimate: 18750 tonne). The total pipes sales volume came in at 57500 tonne, lower than our estimate of 63438 tonnes.Gross income from operations came in at | 317.6 crore. After adjusting for excise duty, net operating income stood at | 288.4 crore, significantly lower than our estimate of | 321.1 crore. EBITDA came in at | 29.2 crore lower than our estimate of | 37.3 crore. EBITDA margins came in at 10.1% (our estimate: 11.6%). The resulting blended EBITDA/tonne came in at | 5083/tonne (our estimate: | 5883/tonne).

Valuation : MSL reported a subdued performance for Q1FY17 on account of lowerthan-expected ERW sales volume. Going forward, we believe the imposition of anti-dumping duty augurs well for the company as it would aid in improving capacity utilisation levels for MSL. We value the company on an SOTP basis and subsequently arrive at a target price of | 215. They have a HOLD recommendation on the stock.

ICICI Securities Ltd | Retail Equity Research Maharashtra Seamless (MSL) reported a healthy set of Q4FY16 numbers wherein the topline and EBITDA came in significantly...

ICICI Securities Ltd | Retail Equity Research Maharashtra Seamless (MSL) reported a subdued set of Q3FY16 numbers wherein the topline and EBITDA came in significantly lower...