Rs 823 crore order book: Heavy buying in this multibagger civil construction stock; Jumps 7.t per cent from an intraday low of Rs 194.90 per share!
The company's shares have an ROE of 30 per cent and an ROCE of 34 per cent.
Today, the shares of Man Infraconstruction Limited (MICL) jumped 7.7 per cent to an intraday high of Rs 209.95 per share from an intraday low of Rs 194.90. The stock is up by 76.65 per cent from its 52-week low of Rs 118.85 per share and gave multibagger returns of over 370 per cent in 3 years. The shares of the company saw a spurt in volume by more than 2 times on BSE.
About Man Infraconstruction Limited (MICL)
Man Infraconstruction Limited (MICL) is a full-service civil construction company with a diversified business model encompassing both EPC (engineering, procurement, and construction) services and real estate development. They handle all aspects of a project, from design to construction, across various sectors including ports, residences, commercial buildings, and roads. MICL leverages joint ventures and development management projects to minimise investment and maximize profit margins typically ranging from 10 to 20 percent.
With a strong revenue projection of over Rs 15,400 crore in the next few years, MICL anticipates significant growth driven by the launch of new residential projects exceeding Rs 4,250 crore in sales potential. They plan further to enhance profitability through strategic acquisitions in the EPC space. Looking ahead, MICL aims to secure better margins through new infrastructure projects and self-executed EPC real estate ventures.
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Earlier Announcements
MICL has established a new joint venture entity named MICL TIGERTAIL LLC in Miami, Florida, USA. This company is a subsidiary of MICL's wholly-owned subsidiary, MICL Global INC, with MICL holding a 50 per cent stake. MICL TIGERTAIL LLC is a newly formed entity that has not yet begun any business operations. It is expected to receive an initial capital contribution of approximately USD 2 million and will focus on real estate development and other lawful business activities in the future.
In separate news, MICL recently acquired a prime redevelopment project in Bandra Kurla Complex (BKC), Mumbai. This marks their entry into the premium redevelopment sector in highly sought-after locations. The project involves redeveloping the Artek Co-operative Housing Society in BKC's Kalanagar area, a prestigious residential area known for attracting professionals, entrepreneurs, and investors due to its proximity to major corporations, financial institutions, and government offices. The project boasts a total construction area of approximately 5 lakh square feet and a RERA carpet area of around 1.5 lakh square feet for sale. This strategically located project has the potential to become a landmark in Mumbai's premier commercial district. MICL Group, with a proven track record of delivering all 16 of their previous projects on time, plans to complete this project within 3 years from launch through their associate entity Arhan Homes LLP. Construction will be executed by Man Infraconstruction Limited itself, which holds a 34 per cent stake in the project.
As of March 31, 2023, the company’s order book stands at Rs 823 crore. The company turns net cash positive on Consolidated financials as of March 2024. The company has a market cap of over Rs 7,600 crore and has delivered good profit growth of 49.2 per cent CAGR over the last 5 years. The company's shares have an ROE of 30 per cent and an ROCE of 34 per cent. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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