Maharashtra Seamless Ltd Stock Analysis

BSE: 500265 | NSE: MAHSEAMLES | Steel & Iron Products | Mid Cap

BSE Share Price 23-Sep-2022 18:01
803.10 -17.15 (-2.09%)

DeciZen - Make an Informed Decision on Maharashtra Seamless

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Maharashtra Seamless Price Chart

P/E Ratio (SA) :
13.74
Market Cap :
5,380.7 Cr.
52-wk low :
306.8
52-wk high :
850.9
Bole Toh?

1. Is Maharashtra Seamless Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Maharashtra Seamless Ltd is a below average quality company.

2. Is Maharashtra Seamless Ltd undervalued or overvalued?

The key valuation ratios of Maharashtra Seamless Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Maharashtra Seamless Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Maharashtra Seamless Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Maharashtra Seamless:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Maharashtra Seamless Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 4.5%2.6%3.2%0.7%5.3%6.7%11%8.6%7.3%9.8%-
Value Creation Index -0.7-0.8-0.8-1.0-0.6-0.5-0.2-0.4-0.5-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,7221,2061,3551,0151,4282,1303,0402,6172,2253,5564,008
YoY Gr. Rt. %--30%12.4%-25.1%40.8%49.1%42.8%-13.9%-15%59.8%-
Adj EPS 17.310.413.22.320.628.35343.538.255.958.5
YoY Gr. Rt. %--40.2%27.2%-82.3%785%37.2%87.4%-18%-12.2%46.4%-
BVPS (₹) 312.4324338320.9419.8443.5475.6465.2484.1537.7554.7
Adj Net Profit 12270.788.215.6138189355291256374392
Cash Flow from Ops. 28673.1-48.918.817487-183749501-290-
Debt/CF from Ops. 00.1-00.40.10.2-2.71.11.4-2.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.4%20%5.4%59.8%
Adj EPS 13.9%22.1%1.8%46.4%
BVPS 6.25.14.211.1
Share Price 8.7% 15.2% 26.4% 155.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 4.42.53.20.656.611.59.2810.910.7
Op. Profit Mgn % 9.97.78.13.515.414.421.921.120.115.215
Net Profit Mgn % 7.15.96.51.59.78.911.711.111.510.59.8
Debt to Equity 0000000.20.30.20.2-
Working Cap Days 2423183064283002302293143712360
Cash Conv. Cycle 1691931662201411171019175960

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 10.70%

Sales growth is good in last 4 quarters at 68.34%

Sales growth has been subdued in last 3 years 5.36%

Net Profit has been subdued in last 3 years 1.77%

Latest Financials - Maharashtra Seamless Ltd.

Standalone Consolidated
TTM EPS (₹) 58.5 65.3
TTM Sales (₹ Cr.) 4,008 4,844
BVPS (₹.) 554.7 575
Reserves (₹ Cr.) 3,683 3,819
P/BV 1.45 1.41
PE 13.74 12.38
From the Market
52 Week Low / High (₹) 306.75 / 850.85
All Time Low / High (₹) 7.12 / 850.85
Market Cap (₹ Cr.) 5,381
Equity (₹ Cr.) 33.5
Face Value (₹) 5
Industry PE 7

Management X-Ray of Maharashtra Seamless :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Maharashtra Seamless

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Maharashtra Seamless Ltd

Maharashtra Seamless Ltd (MSL) was incorporated on May 10, 1988. The company was conceived after noticing huge demand and supply gap in the seamless pipe market, which was met mostly through imports. This import substitute project was set up in 1991 at Nagothane (near Mumbai), Distt. Raigad (Maharashtra), to manufacture seamless pipes & tubes with the finest quality and wide product range using the world renowned CPE technology acquired through technical collaboration with Mannesmann Demag Huttentechnik Gmbh (MDH), Germany at a capital cost of Rs 69 crore. The project was appraised and financed by ICICI in participation with IDBI & IFCI and other banks. Mannesmann Demag is a world leader in steel and seamless pipe industry. Our state of the art plant is only the third of its kind in the world. The plant was commissioned in February 1992. The main plant and machinery was imported from USA based on MDH design.

Business area of the company

Maharashtra Seamless provides a whole range of high-class, customizable and innovative seamless pipes and tubes using state-of-art technology. The company also manufactures ERW Pipes and Coated Pipes. The company also engaged in the business of Wind Power, Steel Pipes & Tubes.

Products

  • ERW Pipes
  • MS & Galvanized Pipes
  • API Line Pipes
  • OCTG
  • OCTG Casing Tubing
  • Seamless Pipes
  • Hot Finished Pipes & Tubes
  • Cold Drawn Tubes
  • Boiler Tubes
  • API Line Pipes
  • OCTG
  • OCTG Casing and Tubing
  • OCTG Drill Pipe
  • Coated Pipes
  • 3LPE
  • FBE
  • 3LPP
  • Internal Coating
  • Premium Connections
  • Pipe Fittings

Key customer segments

  • Oil & Gas
  • Hydro Carbon Process
  • Bearing Industry
  • Automotive
  • Boiler, Heat Exchanger
  • Plumbing & Firefighting
  • Structural
  • General Engineering
  • Railways
  • Sewage & Waterwell
  • Hydraulic Cylinder

Milestones

  • 1989-92: MSL - Entry into Seamless Pipes: The 7” Seamless Pipe plant is set up. Commissioning the country’s first OCTG Seamless Pipe project, the 7” Seamless Pipe plant using CPE technology at Nagothane, Maharashtra (with technical knowhow from German giant Mannesmann Demag Huttentechnik, Gmbh). Today, it is the largest manufacturer of Seamless Pipes and Tubes in India.
  • 2000: MSL sets up a plant to make 20” ERW pipe, largest diameter ERW pipes in India. Today, MSL is one of the largest ERW pipe manufacturers in the country.
  • 2001: Entry into renewable energy: Wind Power MSL ventures into Wind Power energy with 7MW power plant at Satara, Maharashtra.
  • 2004: Another Seamless Pipe manufacturing plant using Plug Mill process is set up at Nagothane. MSL now is capable of producing up to 14” dia. Seamless Pipes.
  • 2005: Entry into Value added Products Premium Connections MSL sets up a JV with Hydril of USA to manufacture Premium Connections required in the most challenging oil & gas sector. Presently, named as Jindal Premium Connections Pvt. Ltd. and wholly owned by the D.P. Jindal Group.
  • 2006: MSL sets up a 3LPP and 3LPE anti-corrosive coating facility near its pipe manufacturing plant. This facility can provide both external and internal coating to pipes up to 1250 mm dia.
  • 2010: An expander added to 14” Seamless Pipe mill. MSL has extended its product range up to 20” diameter.
  • 2012: MSL sets up Solar Power plant at Pokharan, Rajasthan. Allotted under the ‘Jawaharlal National Solar Mission’, the plant can generate 5 MW of power.
  • 2012: Drill Pipes MSL sets up new manufacturing plant at Mangaon, Maharashtra, about 30 km from its main Nagothane plant. Plant capable of manufacturing 6” diameter Drill pipes for the drilling industry.
  • 2017: 20 MW solar PV power project at Village Khetusar, Tehsil Bap, District Jodhpur, Rajasthan 1 MW Roof Top Solar plant at MSL Nagothane factory.
  • 2020: Maharashtra Seamless acquires offshore jack up drilling rig.
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