Maharashtra Seamless Ltd - Stock Valuation and Financial Performance

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

Maharashtra Seamless Share Price

840 -14.10 -1.65%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Maharashtra Seamless

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Maharashtra Seamless stock performance -

mw4me loader
P/E Ratio (SA):
10.68
Market Cap:
11,335.7 Cr.
52-wk low:
350.3
52-wk high:
1,099.1

Is Maharashtra Seamless Ltd an attractive stock to invest in?

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 Overvalued zone.

3. Is Maharashtra Seamless Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Maharashtra Seamless Ltd is likely to Fall 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 2.6%3.2%0.7%5.3%6.7%11%8.6%7.3%17%17.4%-
Value Creation
Index
-0.8-0.8-1.0-0.6-0.5-0.2-0.4-0.50.20.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,2061,3551,0151,4282,1303,0402,6172,2253,9755,7075,811
Sales YoY Gr.-12.4%-25.1%40.8%49.1%42.8%-13.9%-15%78.6%43.6%-
Adj EPS 5.26.61.210.414.126.521.7195259.979.2
YoY Gr.-27%-82.2%789.7%35.8%87.3%-18%-12.6%174%15.1%-
BVPS (₹) 162169160.4209.9221.7237.8232.6242.1294.7350.9402
Adj Net
Profit
70.788.215.61401893552912546978031,062
Cash Flow from Ops. 73.1-48.918.817487-183749501-272908-
Debt/CF from Ops. 0.1-00.40.10.2-2.71.11.4-2.30.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 18.9%21.8%29.7%43.6%
Adj EPS 31.3%33.5%40.2%15.1%
BVPS9%9.6%14.7%19.1%
Share Price 24.2% 27.6% 83% 137.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
2.53.20.65.16.611.59.2819.418.521.1
Op. Profit
Mgn %
7.78.13.515.414.421.921.120.115.218.521.7
Net Profit
Mgn %
5.96.51.59.88.911.711.111.417.614.118.3
Debt to
Equity
000000.20.30.20.20.1-
Working Cap
Days
31830642830023022931437122416394
Cash Conv.
Cycle
19316622014111710191758910379

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 21.00%

Sales growth is growing at healthy rate in last 3 years 29.68%

Net Profit is growing at healthy rate in last 3 years 40.21%

Sales growth is not so good in last 4 quarters at 5.50%

Latest Financials - Maharashtra Seamless Ltd.

Standalone Consolidated
TTM EPS (₹) 79.2 82.3
TTM Sales (₹ Cr.) 5,811 5,822
BVPS (₹.) 402 406.1
Reserves (₹ Cr.) 5,320 5,374
P/BV 2.10 2.08
PE 10.68 10.28
From the Market
52 Week Low / High (₹) 350.30 / 1099.05
All Time Low / High (₹) 3.56 / 1099.05
Market Cap (₹ Cr.) 11,336
Equity (₹ Cr.) 67
Face Value (₹) 5
Industry PE 25.1

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,2061,3551,0151,4282,1303,0402,6172,2253,9755,707
Operating Expenses 1,1181,2469831,2081,8242,3772,0811,7793,3714,673
Manufacturing Costs185217160195311362340274457602
Material Costs8559477409211,3991,8771,5961,3602,7133,726
Employee Cost 40424652627075677696
Other Costs 3838374053677077124250
Operating Profit 88110312203056645364466031,034
Operating Profit Margin (%) 7.3%8.1%3.1%15.4%14.3%21.8%20.5%20.1%15.2%18.1%
Other Income 63839985687066919086
Interest 3471091648484136
Depreciation 37297069747879105121136
Exceptional Items 00000-146-450-19100
Profit Before Tax 1111605422629049325193531949
Tax 14372380922314651-181156
Profit After Tax 9712331146198262-21142711793
PAT Margin (%) 8.1%9.0%3.1%10.2%9.3%8.6%-0.8%6.4%17.9%13.9%
Adjusted EPS (₹)7.19.22.410.914.819.6-1.510.653.159.2
Dividend Payout Ratio (%)42%27%53%23%20%15%-81%17%5%8%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2,7912,8022,6882,8132,9713,1863,1173,2443,9524,706
Share Capital 34333333333333333367
Reserves 2,7572,7692,6542,7792,9383,1533,0833,2103,9194,639
Minority Interest0000000000
Debt817139484756621515162
Long Term Debt110116446750621515162
Short Term Debt70723396000
Trade Payables14666132139130273570733479296
Others Liabilities 212227320321338388475540325621
Total Liabilities 3,1573,0963,1473,2853,4494,3324,9185,1375,2715,784

Fixed Assets

Gross Block1,6891,6971,7101,7551,9661,9832,8222,8423,6503,667
Accumulated Depreciation4585326006697438218999981,3291,465
Net Fixed Assets1,2311,1641,1101,0861,2221,1621,9231,8442,3202,202
CWIP 17333111817232991314
Investments 6986206628367197597968825481,121
Inventories4354904994845097697128701,4321,503
Trade Receivables338298265309394495367461562644
Cash Equivalents 29163610603506650
Others Assets4094745764465771,0641,0881,021330249
Total Assets 3,1573,0963,1473,2853,4494,3324,9185,1375,2715,784

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 73-491917487-183749501-272908
PBT 1111605422629149425195532950
Adjustment -19-347123918953929498112
Changes in Working Capital -1-140-207-160-69131535-920-86
Tax Paid -18-34-23-71-83-175-130-2318-67
Cash Flow From Investing Activity 3812019-151-34-181-1,027-307423-466
Capex -19-23-13-132-110-23-846-9-6-19
Net Investments 57119923523699-167-197114-477
Others 02424-254-161-257-14-10231529
Cash Flow From Financing Activity -89-84-41-20-49415221-146-147-457
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 00-111-6444317-133-109-357
Interest Paid -2-3-7-10-6-14-57-41-36-31
Dividend Paid -42-40-33-17-34-40-40-17-24-34
Others -45-410-4-32504521-36
Net Cash Flow 21-14-33451-57474-16
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)4.45.481.435.866.868.52-0.664.4519.7818.33
ROCE (%)5.157.282.759.4710.2815.291.936.1113.3920.67
Asset Turnover Ratio0.420.470.360.490.640.780.570.440.761.03
PAT to CFO Conversion(x)0.75-0.40.611.190.44-0.7N/A3.53-0.381.15
Working Capital Days
Receivable Days92809367595360684739
Inventory Days132116163114847710313010694
Payable Days394149543539971758238

Maharashtra Seamless Ltd Stock News

Maharashtra Seamless Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Maharashtra Seamless on 28-Mar-2024 16:01 is ₹840.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Maharashtra Seamless stood at ₹11,335.7.
The latest P/E ratio of Maharashtra Seamless as of 28-Mar-2024 16:01 is 10.68.
The latest P/B ratio of Maharashtra Seamless as of 28-Mar-2024 16:01 is 2.10.
The 52-week high of Maharashtra Seamless is ₹1,099.1 and the 52-week low is ₹350.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Maharashtra Seamless is ₹5,811 ( Cr.) .

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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