Rs 823 crore order book: Multibagger civil construction company incorporates a new subsidiary in State of Miami, Florida, USA – details inside!

The stock is up by 85 per cent from its 52-week low of Rs 108 per share and gave multibagger returns of over 400 per cent in 3 years.

Today, the shares of Man Infraconstruction Limited (MICL) gained 2.4 per cent to an intraday high of Rs 199.70 per share from its previous closing of Rs 195.05. The stock is up by 85 per cent from its 52-week low of Rs 108 per share and gave multibagger returns of over 400 per cent in 3 years.

Man Infraconstruction Limited is informed that the company have established a joint venture entity named MICL TIGERTAIL LLC in Miami, Florida, USA. MICL TIGERTAIL LLC is a 50 per cent owned subsidiary of the Company's wholly-owned subsidiary, MICL Global INC. MICL TIGERTAIL LLC is a newly formed entity with no prior business operations and is expected to receive a capital contribution of approximately USD 2 million. The purpose of this joint venture is to engage in real estate development and other lawful activities, but MICL TIGERTAIL LLC has not commenced business operations yet. Importantly, except for Mr. Vatsal Shah (Promoter Group) who was appointed as a manager of the entity, the Company's promoter and promoter group have no other interest in MICL TIGERTAIL LLC.

Earlier, the company acquired a prime redevelopment project in Bandra Kurla Complex (BKC), marking their entry into the premium redevelopment sector in sought-after locations. This project involves redeveloping the Artek Co-operative Housing Society in BKC's Kalanagar area, a vibrant and luxurious residential area that attracts professionals, entrepreneurs, and investors due to its proximity to multinational corporations, financial institutions, and government offices. With 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 is poised to become a landmark in Mumbai's premier commercial district. MICL Group, known for delivering all 16 of their previous projects on time, intends to complete this project within 3 years from launch through their associate entity Arhan Homes LLP, with construction being executed by Man Infraconstruction Limited, which holds a 34 per cent stake in the project.

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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 minimize 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 to further 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.

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 7,00 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. Investors should keep an eye on this Small-Cap stock.

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