Quant MF-Backed Stock Man Infraconstruction Forms Real Estate JV In US

Mumbai-based real estate company Man Infraconstruction Ltd. has informed the exchanges that it has incorporated real estate joint venture MICL Tigertail with its wholly-owned subsidiary MICL Global in Florida, US. MICL Tigertail is a newly formed entity. MICL Global is expected to contribute capital of USD 2 million approximately in MICL Tigertail, according to an exchange filing.

Man Infraconstruction will hold 50% of the company through its subsidiary MICL Global.

Shares of Man Infra opened in the green at Rs 196.80 against the previous close of Rs 194.95. It made a high of Rs 199.65, up 2 per cent.

Man Infra is a constituent of BSE SmallCap index. According to BSE analytics, its shares have climbed 70 per cent in the last one year. The stock has made its investors wealthier by 397 per cent in the last three years and 888 per cent in the last five years.

Recently, the company announced that it will redevelop Artek Co-operative Housing Society in Mumbai's BKC. According to an exchange filing, the project involves the redevelopment of Artek Co-operative Housing Society Limited (Society), in the Kalanagar area situated at BKC. The project has a total construction area of approximately 5.0 lakh square feet and offers an RERA carpet area of around 1.5 lakh square feet for sale.

Earlier, the company posted over a twofold rise in its standalone net profit to Rs 66.53 crore in the quarter of the financial year 2024 on lower expenses. It had posted a net profit of Rs 29.81 crore during the fourth quarter of last fiscal, the company said in an exchange filing. However, the company's total income fell to Rs 186.22 crore from Rs 370.47 crore in the January-March period of FY23. Man Infraconstruction trimmed its expenses to Rs 114.90 crore from Rs 332.17 crore a year ago. The company brought down its cost of materials to Rs 57.35 crore from Rs 265.93 crore in the fourth quarter of FY23.

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.

Man Infraconstruction Limited (MICL) is among the stocks in which Quant Mutual Fund - Quant Small Cap Fund held a 1.62% stake with 60,30,000 shareholding as of March 2024.