Over 180% return in a year! Axis Securities initiates coverage on Man Infra shares with 28% upside potential

Shares of Man InfraConstruction have delivered over 180 per cent return in the last 12 months. The multibagger stock is up around 760 per cent in the last 5 years and has delivered over 1,300 per cent return in the last 10 years.

Axis Securities expects the momentum to continue going forward as well. It has initiated its coverage on Man Infraconstruction stock with a 'Buy' recommendation and a target price of Rs 270, signalling an upside of 28% from the current market price.

It said that the recommendation is supported by a healthy project pipeline, asset-light business model, and strong execution capabilities.

"The company's current ratio of JV/DM projects to owned projects is 1:3, which it plans to increase to 2:3 in the coming years, ensuring efficient use of capital and high scalability. This will lead to improving the bottom line over the coming years," it said.

The brokerage firm noted that the company has maintained a very healthy balance sheet with only Rs 205 crore in borrowings, which include short-term borrowings of Rs 135 crore (secured debt). It has also considerably reduced its debt by around Rs 300 crore in FY23, year-to-date.

"In Dec 2023, the company issued Rs 543 crore of preferential shares for future growth expansion. A low leverage and high cash flow blend present a very efficient and

attractive scenario in the real estate development business. Due to its asset-light business model, it can scale up without significant capital pressure, thereby improving the bottom line in coming years," it said.

Recently, the company announced the acquisition of another project in South Mumbai and the scheme of arrangement and merger of two wholly-owned subsidiaries. The company informed about the same through separate exchange filings with the bourses.

"MICL Group acquires another project in South Mumbai near Marine Lines, said MICL Group in an exchange filing. "The aforementioned ultra-luxurious project shall be another addition to MICL's real estate portfolio in the area. It is set to become yet another tallest residential structure, surpassing the height of above 800 feet," said the company.

About Man InfraConstruction

Maninfra is headquartered in Mumbai having two business verticals viz., construction and real estate development. It is an integrated EPC (engineering, procurement and construction) company with execution capabilities in port, residential, commercial & industrial and road construction segments with projects spanning across India.