Heavy buying was witnessed in this multibagger civil construction stock with an Rs 823 crore order book; Promoters, FIIs & DIIs increased their stake in FY24

The stock gave multibagger returns of 400 per cent in 3 years and a whopping 730 per cent in 5 years.

Man Infraconstruction Limited (MICL) is a full-service civil construction company with expertise across various sectors including ports, residences, commercial buildings, and roads. They handle all aspects of projects from engineering and procurement (EPC) to construction and have experience developing both residential communities and commercial spaces. MICL's business model offers diversified income streams through both real estate projects and EPC services, where they typically see margins ranging from 10 to 20 per cent. To minimize their investment, they focus on joint ventures and development management (DM) projects, allowing them to leverage partner capital.

Man Infraconstruction Limited has ambitious plans for the next few years, with a projected revenue visibility of over Rs 15,400 crore in the next 5-6 years. They expect a strong year in FY25 with the launch of 11.5 lakh sq. ft of space, with a sales potential exceeding Rs 4,250 crore. Key projects in Vile Parle, Pali Hill, and Marine Lines are expected to drive bookings. The company anticipates growth in profitability not just from these residential projects, but also through strategic acquisitions in the EPC (engineering, procurement, and construction) business. Their current order book sits at Rs 823 crore, with a major portion coming from the prestigious BMCT project.

Looking ahead, Man Infraconstruction is eyeing new infrastructure projects to secure better margins and plans to focus on self-executed projects within the EPC real estate segment. They are also bullish on future EPC projects and profitability. Furthermore, Man Infraconstruction has completed its first project in the US and has received a certificate of occupancy. This initial success has led to a collaboration with "Ritz-Carlton" Residences by Marriott, and the company is actively seeking to acquire more projects in the US market, particularly in Miami and other Florida cities.

According to standalone Quarterly Results, the company reported net sales of Rs 121.40 crore in Q4FY24 and net profit increased by 123.1 per cent to Rs 66.53 crore in Q4FY24 over Q4FY23. In its standalone annual results, the company reported net sales of Rs 708.33 crore in FY24 and net profit increased by 17.8 per cent to Rs 195.46 crore in FY24 over FY23.

According to consolidated quarterly results, the company reported net sales of Rs 296.74 crore and a net profit of Rs 57.98 crore in Q4FY24 compared to net sales of Rs 680.27 crore and a net profit of Rs 88.83 crore in Q4FY23. In its consolidated annual results, the company reported net sales of Rs 1,263.45 crore and a net profit of Rs 284.19 crore in FY24 compared to net sales of Rs 1,890.35 crore and a net profit of Rs 284.12 crore in FY23. 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.

Also Read: Rs 1,783 crore order book: Multibagger solar EPC company gets trading approval for warrants converted to equity shares from BSE & NSE to promoters & non-promoters!

The company has a market cap of Rs 6,731 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. The promoters of the company increased their stake to 67.31 per cent, FIIs increased their stake to 3.55 per cent and DIIs increased their stake to 2.10 per cent in March 2024 compared to 67.12 per cent, 0.44 per cent and 1.62 per cent, respectively, in March 2023.

Today, the shares of MICL gained 6.10 per cent to an intraday high of Rs 184.55 per share from its previous closing of Rs 173.95 with a spurt in volume by more than 1.50 times on BSE. The stock gave multibagger returns of 400 per cent in 3 years and a whopping 730 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.

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