Profitmart Securities has given Buy recommendation for Marine Electricals with a target price of Rs. 81 in its research report issued on Apr 19, 2021

Profitmart Securities research report on Marine Electricals

Marine Electricals Limited (MEL) was established in 1978 by Mr. K.D. Uchil and since the last 4 decades MEL has grown from strength to strength to become one of India’s leading players in electrical solutions that include Low Voltage (LV) and Medium Voltage (MV) Electrical systems, Control Systems and Automation products. Over the years, MEL has built and demonstrated strong capabilities to move up the value chain in to a complete solution provider for both the marine and industrial business segments. The major clientele for Marine vertical includes the Indian Navy, Mazagaon Docks, Goa Shipyard, Garden Reach Shipbuilders, Cochin Shipyard. In the Industrial business, MEL is the largest partner of Schneider Electric in India for their Blockset panels. In addition to that, MEL has developed its own product and solutions for Low Voltage (LV) and Medium Voltage (MV). MEL has provided comprehensive electrical solutions across Industries, Data Centres, Oil and Gas, Pharmaceuticals, Buildings and Infrastructure. MEL has 6 state-of-the-art manufacturing facilities based in Mumbai, Goa, UAE and Italy.

Outlook

Hence looking at MEL’s steady financial track record, strong product domain and dominant market share and strong promoters we expect the stock to get re rated in future and estimate a fair value of Rs 81 over the next 12 to 18 months.

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