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Man Industries, a manufacturer of steel pipes, experienced a significant surge in its share price, reaching a 52-week high following the announcement of its largest single order worth ₹1,850 crore. This substantial order was secured from an Oil & Gas International Company for the supply of high value-added line pipes of API 5L grade.
The order, anticipated to be delivered over the next 12 to 18 months, will contribute to Man Industries' already robust order book, which now stands at around ₹4,000 crore. This significant order volume is a testament to the company's strong business environment and the trust placed in its technological and executional capabilities by its customers.
The company's share price has exhibited a strong upward trend, with a notable gap-up opening on Monday's early trade. While initial gains were trimmed, the stock maintained a positive momentum, breaking beyond the 450 level and potentially targeting a range of 530–550 in the near term.
The bullish gap observed at 475 and 450 serves as immediate support and a buying zone. The company's strong performance is further supported by its recent order wins, including fresh orders worth ₹490 crore from both domestic and international markets. These orders, primarily for steel pipes used in oil and gas transportation and water transport projects, have bolstered the company's order book to nearly ₹2,600 crore.
Emkay Research, a brokerage house, initiated coverage on Man Industries with a 'Buy' rating and a target price of ₹500, which the company has already surpassed. The brokerage attributes the share price doubling in a year to strong business fundamentals, increased visibility into the company's development plans, and favorable industry tailwinds, such as rising pipe demand and peer capacity expansion.
Emkay highlights the potential for significant shareholder value creation as Man Industries transitions from the 'potential' phase, marked by optimism and growth aspirations, to the 'delivery' phase, where project execution is expected to double the group's revenue within 3-4 years. The company's impressive growth trajectory is further substantiated by Trendlyne data, which indicates a 250% increase in its share price over a single year.
This remarkable performance underscores the company's strategic positioning in a promising market and its ability to capitalize on emerging opportunities. The substantial order secured from the Oil & Gas International Company, coupled with its strong order book and positive industry outlook, reinforces Man Industries' position as a leading player in the steel pipe manufacturing sector.