Choice Institutional Equities has started coverage on Man Industries with a 'BUY' rating and a price target of Rs 800 per share. The move follows strong first-quarter results for FY27, where the company saw its net profit grow to Rs 61.43 crore. Investors are tracking the company's Rs 3,600 crore order book and its progress on international and domestic expansion projects.
Choice Institutional Equities has initiated coverage on Man Industries with a 'BUY' recommendation, setting a target price of Rs 800 per share. This positive outlook is primarily driven by the company’s performance in the first quarter of the 2027 fiscal year, where it reported a significant rise in profitability.
Man Industries reported a consolidated net profit of Rs 61.43 crore for the quarter ending June 2026. Revenue for the same period stood at Rs 1,064.96 crore. Analysts have pointed to this growth in both revenue and profit as a key indicator of the company’s improving operational efficiency. Management has provided guidance that total revenues for the full fiscal year 2027 could reach between Rs 50 billion and Rs 55 billion, with profit margins expected to remain in the 13% to 15% range.
A central part of the company’s current business strategy is its consolidated order book, which stands at approximately Rs 3,600 crore. These orders are distributed across operations in India and Saudi Arabia, providing a level of geographical diversity to its revenue stream. Beyond the existing orders, the company is actively pursuing new work, with a total bid pipeline valued at Rs 24,000 crore.
To support this demand, Man Industries is currently investing in capacity expansion. Two major projects are underway: a greenfield coating and double-jointing facility in Dammam, Saudi Arabia, and a stainless-steel plant in Jammu. The company expects both of these facilities to be completed by March 2027. This expansion is designed to help the company increase its production capacity and reach new markets.
While the growth prospects appear positive, investors should be aware of certain risks that could affect the company. The steel pipe manufacturing business is sensitive to volatility in raw material costs, particularly steel prices, which can put pressure on profit margins. Additionally, the company operates in a highly competitive market where winning infrastructure contracts often involves intense bidding, which may sometimes limit the company's ability to maintain higher pricing power.
There is also the challenge of execution risk. Scaling up operations, especially for international projects like the one in Saudi Arabia, requires precise project management. Any delays in commissioning the new plants in Dammam or Jammu, or cost overruns, could impact the company's financial performance. Investors will be looking for updates on the order execution, the actual spending on these new projects, and the company's ability to manage margins as it navigates these expansion and raw material cost factors in the coming quarters.