Amid the current bull market, many small and mid-cap stocks have beaten large-cap counters by delivering stellar returns, while also setting new record highs. Man Infraconstruction was one such stock that emerged as a notable performer during this period of market euphoria.
After ending FY23 on a weak note, losing 35% of its value, the stock rebounded strongly in FY24 with a gain of nearly 20% in April. The positive momentum continued in the subsequent month, with the stock further increasing by an additional 13%. And in the current month so far, it has surged by approximately 25.6%, resulting in an overall gain of 70%.
From its March 2020 low of ₹9.25 apiece, the stock has zoomed 1151% to date. The stock's all-time high was recorded at Rs. 131.10 in January last year. With the current market price of ₹115.75, the stock is currently 12% below that peak level.
On June 23, the stock marked a new 52-week high of ₹119.15 apiece after the company received a Letter of Acceptance (LoA) for ₹680 crore pavement work from Bharat Mumbai Container Terminal Private Limited (BMCTPL). This LoA is for the execution of Phase 2 Infrastructure Works at the Fourth Container Terminal of JNPT within a 2.5-year time frame.
Furthermore, the company's subsidiary, MICL Creators LLP, has recently acquired development rights from ten adjoining societies situated on Ratilal B Mehta Road, Ghatkopar (East), Mumbai, Maharashtra.
"This landmark cluster redevelopment, conducted under Regulation 33(9) of the new development regulations, will offer a saleable carpet area of 4 lakh square feet, aiming to redefine the concept of luxurious living. The overall construction area, which spans 13 lakh square feet, will be managed by Man Infraconstruction Limited and is expected to be completed within a timeframe of 3.5 to 4 years," the company said in an exchange filing.
Meanwhile, European investment firm Societe Generale acquired a 1.06% stake in the company through open market transactions on June 12, according to media reports.
Man Infraconstruction is an integrated EPC (engineering, procurement, & construction) company with experience and execution capabilities in the port, residential, commercial & industrial and road construction segments with projects spanning across India.
During the March-ending quarter, the company recorded a consolidated net profit of ₹92 crore, a significant improvement compared to a net profit of ₹41 crore in the same period last year, resulting in a 124% YoY growth. Its revenue from operations for the quarter reached ₹680 crore, a growth of 157.57% compared to ₹264 crore in Q4 FY22.
Looking at the overall fiscal year 2022–23, the company achieved a net profit of ₹289 crore, marking a marginal decline from ₹299 crore registered in FY22. The total revenue for FY23 stood at ₹1,890 crore, an increase from ₹961 crore posted in FY22.
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