Man Infraconstruction - RESEARCH REPORT

Counter with strong liquidity, Clientele Order and Legacy

CMP:210 | MCAP:7800 cr | ROCE:32% | ROE: 26.4%| High/low: 249/77.6

Introduction:  MICL Group are proud of our lineage spanning 5 decades of experience, with execution capabilities in Port, Residential, Commercial & Industrial and Road construction segments.

As a Real Estate Developer, Maninfra Group has delivered 16 residential projects in Mumbai and is recognized for its superior quality construction and timely project delivery. The Company has extensive experience in construction management and has inherent skills and resources to develop and deliver Real estate projects. With Diversified Business Verticals   5.7 mn Sq ft projects- real Estate  and ₹ 1047 Cr Order Book- EPC

Some of the land mark projects completed: are Ambrosia- Borivali- Mumbai, Kohinoor Residency – Vidhya Vihar- Mumbai, Orchid Ozone- Dahisar Mumbai, Orchid woods – Goregaon – Mumbai, Anandam City – Nagpur, PCMC- Pune, Nhava Seva- International Container terminal, Mundra Port- Gujarat, Bharat Mumbai Container Terminal Pvt Ltd, BMCT, - Navi Mumbai, Rail Yard Facility- IPRCL, Navi Mumbai

Current ongoing project; JNPT- Phase 2- Navi Mumbai, Insignia _ vile Parle, Atmosphere phase-2 Nahur- Mumbai

Recent Announcement: MICL Group acquired another project in South Mumbai - "An Iconic Uber luxurious Sea-Facing Residential project near Marine Lines", It is set to become yet another tallest residential structures in India to be done by MICL group surpassing the height of above 800 feet. With a proven track record of delivering all its 16 projects before time, MICL group intends to deliver this project in a span of 5 years from launch date.

With the total construction area of approximately 22 lakh square feet offering a RERA carpet area of around 5.3 lakh square feet for sale, the project is expected to generate total sales value of above Rs. 2,100 crore. The project is executed under asset-light Development Management (DM) model and Co. have secured a Letter of Intent (LOI) from Shreepati Zaoba Housing LLP.

Notably, this marks MICL Group's second venture into uber-luxurious residential projects in South Mumbai, following the launch of our first project, ‘Aaradhya Avaan’ at Tardeo, which shall be one of the tallest towers in the country, surpassing 1,000 feet in height. The Marine Lines project is expected to exceed 800 feet in height and will feature a range of ultra-luxurious amenities, promising to set a new standard for lifestyle and living in South Mumbai.”

Company performance Higlight: Q3FY24

• Revenue from operations stands at Rs. 242 cr vs Rs. 457 cr in PY Total Income stands at Rs. 261 cr. Vs Rs. 472 cr in PY
• EBITDA stands at Rs. 103 cr vs Rs. 129 cr in PY
• Net profit at Rs. 83 cr. Vs Rs. 85 cr in PY
• Secured Debt stands at Rs. 135 cr. as on Dec-23 Net Cash positive at consolidated levels
• Strong liquidity of Rs. 545 cr. as on Dec-23

Clientele:

Recent Redevelopment project

• MICL to build gated community (Redevelopment Project) in Ghatkopar East – ‘Aaradhya OnePark’ MICL is currently spearheading an ambitious ultra-luxury cluster redevelopment venture situated along the prominent 60 ft. road in Ghatkopar East. This project marks a significant milestone as MICL has secured redevelopment rights from ten societies in the area.
• Redevelopment of Residential Abode at Pali Hill MICL Group has announced its new venture into the redevelopment of the luxury residential project at Pali Hill. The company will hold a 34% stake in the undertaking, which belongs to Virgo Co-Operative Housing Society, Bandra (West).
• Redevelopment – Goregaon West Project, Royal Netra Constructions MICL has acquired one of the largest redevelopments on a 10-acre land parcel in the western suburbs of the city. The project will be undertaken through MICL’s associate entity – Royal Netra Constructions Pvt. Ltd. Currently, MICL holds a 33.3% stake in the project, with an indicative topline of Rs 4,000 Cr.

Company  Expansion Strategy:

Real Estate

• Establishing presence in western suburbs of Mumbai, MMR and South Mumbai
•  Growth through Asset Light model – JV / JDA / DM
•  Expanding premium to ultra luxury portfolio
• Expand presence in USA markets

Maintain Strong Liquidity & Profitability:

• Focus to be Net Cash positive & maintain high liquidity levels
• Focus on healthy bottom line

Higher Revenue Visibility:

• Expecting potential increase in real estate revenue from ongoing & upcoming projects

• Order book of Rs. 1,047 Cr as on Dec-23
• Launch of new real estate projects is likely to add PMC margin

Technical View

Technical Overview:

Weekly chart is in bullish trajectory, stock is trading one 3 important weekly moving average (50,89,200) which show bullish momentum of the counter, one can look for the upside target of around Rs. 270-300, with a strict stop loss, fundamentally stock is backed huge order books, it also backed by the strong liquidity to fulfill the projects on time, hence as turnaround counter one can keep this stock on the counter accordingly.

EMA 50 on weekly chart has been acted as support for the counter hence one can use EMA 50 as stop loss and look for the buy opportunity in the same.

ANALYST : KUNNJ LALKA

info@smartinvestment.in

(Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

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