Promoter bought 2,00,000 shares of this multibagger civil construction stock with Rs 1,047 crore order book; scrip trades at high ROE & high ROCE

The stock gave multibagger returns of 168 per cent in just 1 year whereas BSE Small-cap Index is 56 per cent and a whopping 640 per cent in 3 years.

Today, the stock market was trading in green with Sensex and Nifty-50 indices gaining over 0.2 per cent each. On the broader front, indices were down with Mid-Cap down by 0.1 per cent and Small-Cap down by 0.12 per cent.

Though the market has mixed numbers, one multibagger small-cap stock from the civil construction sector was in green, up 5.26 per cent to an intraday high of Rs 197 per share from its previous closing of Rs 187.15. The stock is down by 21 per cent from its 52-week high is Rs 249.90 while it gave multibagger returns of 198 per cent from its 52-week low is Rs 66.25.  

The stock name is Man Infraconstruction Limited (MICL).

Man Infraconstruction Limited (MICL) is an integrated EPC (engineering, procurement & construction) company with experience and execution capabilities in port, residential, commercial & industrial and road construction segments. The company has a market cap of over Rs 7,000 crore and as of December 31, 2023, the company's order book stands at Rs 1,047 crore.

The company disclosed on BSE, that the promoter of MICL, i.e., Mansi Parag Shah bought 2,00,000 shares of the company via the open market at approx. Rs 191 per share aggregating to Rs 3.82 crore.

Earlier, MICL has established itself as a reliable developer by delivering two towers of their "Aaradhya Highpark" project 21 months ahead of schedule, showcasing their commitment to quality and timely completion. This achievement comes alongside the early delivery of all six residential towers and a commercial tower within the same project, along with securing Occupancy Certificates for all. MICL's success extends to their recent fundraising and launch of two new ultra-luxury projects in Mumbai, while also obtaining the OC for another project and undertaking a high-end redevelopment project in Bandra West.

According to Quarterly Results, the net sales increased by 12.3 per cent to Rs 241.75 crore and net profit increased by 32.85 per cent to Rs 86.51 crore in Q3FY24 compared to Q2FY23. In its nine-month results (9MFY24), the company reported net sales of Rs 967 crore compared to net sales of Rs 1,210 crore in 9MFY24 while net profit increased by 33 per cent to Rs 235 per cent in 9MFY24 compared to Rs 177 crore in 9MFY23. Maintained net cash positive balance sheet and healthy liquidity of Rs 545+ crore at the consolidated level as of December 2023.

The company announced its fourth interim dividend of Rs 0.54 per equity share (i.e. 27 per cent) on 37,12,50,405 equity shares having a face value of Rs 2 each, for the Financial Year 2023-24. The Record Date to determine the entitlement of shareholders for the said fourth interim dividend ex-date was Thursday, February 15, 2024,

The shares of the company have an ROE of 26.40 per cent and an ROCE of 32 per cent. The stock gave multibagger returns of 168 per cent in just 1 year whereas BSE Small-cap Index is 56 per cent and a whopping 640 per cent in 3 years. Investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.