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Maharashtra Seamless Ltd. Stock Analysis

Small Cap
Evaluated by 3210 users | BSE: 500265 | NSE: MAHSEAMLES |
Steel & Iron Products
Maharashtra Seamless (MSL) incorporated in 1988, is engaged in the business of manufacturing pipes and tubes. Company is part of Rs.3000 Crore D.P. Jindal Group. Company also manufactures ERW pipes and seamless pipes. Its ERW plant is capable to manufacture ERW Pipes up to 21' Outer Diameter...

Analysis of Financial Track Record

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 performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.43%11.06%4.5%2.58%3.24%0.73%5.26%6.72%11%8.55%
Value Creation Index -0.37-0.42-0.77-0.87-0.83-0.96-0.73-0.65NANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,7612,2921,7221,2061,3551,0151,4282,1303,0402,617
Y-o-Y Gr. Rt.-30.1%-24.9%-30%12.4%-25.1%40.8%49.1%42.8%-13.9%
Adjusted EPS (Rs.) 42.9541.317.3110.3513.162.3320.6228.2852.9943.46
Y-o-Y Gr. Rt.--3.8%-58.1%-40.2%27.2%-82.3%785%37.2%87.4%-18%
Book Value per Share (Rs.) 260.54297.63312.35324337.95320.88419.83443.49475.56465.2
Adjusted Net Profit 30329112270.788.215.6138189355291
Net Op. Cash Flow (Rs. Cr.) -33.581.628673.1-48.918.817487-183749
Debt to Cash Flow from Ops -0.090.380.020.11-0.020.370.10.18-2.671.07
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Maharashtra Seamless Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.5%14.1%22.4%-13.9%
Adjusted EPS 0.1%27%28.2%-18%
Book Value per Share 6.76.63.5-2.2
Share Price -2.2% 10.3% -16.5% -26.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.5510.994.382.523.150.575.026.5511.539.24
Operating Profit Margin (%) 24.0317.619.937.718.093.5115.4314.3821.8521.07
Net Profit Margin (%) 17.212.717.095.866.511.549.678.911.6811.13
Debt to Equity 00.0100000.010.010.150.26
Working Capital Days 178183242318306428300230229314
Cash Conversion Cycle 12412116919316622014111710191
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 63.04%
Institutions 8.49%
Non-Institutions 28.46%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Maharashtra Seamless Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Maharashtra Seamless Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Maharashtra Seamless Ltd.'s performance infers:

Maharashtra Seamless Ltd. earnings have grown by 27%, whereas share price has appreciated 10.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Maharashtra Seamless Ltd. share prices over the last 10 years. Here is what we found out:

Maharashtra Seamless Ltd. share price has appreciated -3.5% annually over the past ten years.

Maharashtra Seamless (MSL) incorporated in 1988, is engaged in the business of manufacturing pipes and tubes. Company is part of Rs.3000 Crore D.P. Jindal Group. Company also manufactures ERW pipes and seamless pipes. Its ERW plant is capable to manufacture ERW Pipes up to 21' Outer Diameter (OD) becoming the first and only plant in India.

Company has diversified its business by venturing in power generation segment. Company has set up 7 MW wind power project at located at Satara

Maharashtra Seamless (MSL) incorporated in 1988, is engaged in the business of manufacturing pipes and tubes. Company is part of Rs.3000 Crore D.P. Jindal Group. Company also manufactures ERW pipes and seamless pipes. Its ERW plant is capable to manufacture ERW Pipes up to 21' Outer Diameter (OD) becoming the first and only plant in India.

Company has diversified its business by venturing in power generation segment. Company has set up 7 MW wind power project at located at Satara Maharashtra. MSL entered into a technical collaboration with MANNESMANN DEMAG HUTTENTECHNIK of Germany to set up plant in Raigad. Around 25% of the production is exported to the United States Middle East, Europe, Middle East, ASIA and Far East.

Company has clientele namely Telco, Bhel, Thermax, ABB-ABL, IPCL, IOCL, ONGC, Oil, GAIL, EIL, LML, NTPC, SAIL, Indian Railways, Ordnance Factories and many others.

Business Division

Seamless- It is the largest manufacturer of Seamless Steel Pipes and Tubes in India. It has production capacity of over 350,000 MT per annum. Company produces pipes ranging from 1' OD to 7' OD. The company is first in India to manufacture Seamless Pipes up to 14' of diameter.

ERW- Company manufactures ERW pipes ranging from 8' to 20', wall thickness from 3.2 mm to 12.70 mm. ERW pipe facilities with installed capacity of 200000 MT per annum.

Power Plant- Company established 7MW Wind Power Plant situated at Satara Maharashtra.

Milestones

1988- Maharashtra Seamless (MSL) was incorporated.

1991- Maharashtra Seamless launched IPO.

1992- Company established a seamless plant up to 7' Outer Diameter.

1993- MSL received API Certification. The same year company started production of Casing and Line Pipes.

1995- Company received IBR Certification by Central Boiler Board.

1996- Company received ISO Certification by BVQI for quality management.

2000- MSL commenced operation of ERW Plant up to 21' Outer Diameter

.2001- Company established 7MW Wind Power Plant.

2004- MSL set up a Higher Dia Seamless Pipes plant up to 14' Outer Diameter.

2005- Company formed JV with Hydril USA to set a facility.

2006- Company started a coating facility.

2007-MSL acquired Seamless Plant from Romania for 200000 TPA.

D.P. Jindal Group (Parent Company) The D.P. Jindal Group of Companies was founded in 1952. This Rs.3000 Crore Group has their business interest in area of Infrastructure, High-tech realms of deep-ocean oil drilling, prospecting for oil, gas and petroleum products and exports. Besides Maharashtra Seamless, the group owns companies namely Jindal Pipes- manufactures of ERW black and G.I. pipes; Jindal Drilling & Industries- engaged in Offshore Drilling for Oil and Gas; Jaguar Overseas- it is merchant exporter and importer; and Jaguar International- it is export division of the Group

2010 - Maharashtra Seamless credit Rating Upgraded to AA+.
Received Allotment of 5 MW Solar PV Plant in Rajasthan from NTPC Vidyut Vyapar Nigam under Jawaharlal Nehru National Solar Mission

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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