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Maharashtra Seamless Ltd Stock Analysis

Small Cap
Evaluated by 3236 users | BSE: 500265 | NSE: MAHSEAMLES |
Steel & Iron Products

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...

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 -3.8% 5.5% -16.4% 40.4%
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 63.78%
Institutions 7.80%
Non-Institutions 28.42%
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 5.5% 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 -2.8% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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