Man Infraconstruction Ltd
Construction & Engineering
FV – Rs 2; 52wks H/L – 50/28.85; TTQ – 1.9 Lakhs; CMP (June 13, 2016) – Rs 41.9;

Market Cap – Rs 1037 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

	Equity Capital	Net worth	Long Term Debt	Total Sales	PAT	BV (Rs)	EPS (Rs)	P/E	Industry P/E	P/BV	Promoter’s Stake	Beta
Consolidated	49.5	605	287	227	13.26	24	0.54	77.22	25.44	1.74	60.25	1.45
Standalone	49.5	623	–	212	37.56	25	1.5	27.8	25.44	1.67	60.25	1.45

 

• The share price has moved up by 26% in the last three months to Rs 41.9 (13/6/16) from Rs 33.25 (13/3/16).
• The PAT for Q4 FY16 fell by 87% Q-o-Q (it was actually higher at Rs 7 Crs) because the company had to pay the pending CSR (corporate social responsibility) donation of Rs 2 Crs and make provisions for Rs 4 Crs.
• The company has no bad debts on the books now.
• In December 2015, Company’s promoter Mansi Parag Shah sold around 6.5% of her stake in the company for various charity purposes. Shah sold around Rs 1.6 Crs shares, amounting to Rs 74.90 Crs. After the stake sale, Shah’s holding in the company declined to 15.35% from 21.8% earlier.
• Auditors have put an Emphasis of Matter without qualifying the opinion on the issue of termination letter by Manaj Tollway Private Limited (MTPL), a subsidiary of the company, to Public Works Department, Govt. of Maharashtra (PWD) on March 30, 2015 for terminating the Concession Agreement with respect to the construction road on DBFOT basis due to unresolved matters on land acquisition and forest clearance and has stopped the work. As at March 31, 2016, expenses incurred on construction of Tollway are classified as “Intangible Assets under Development” by MTPL amounted to Rs 129.93 Crs. MTPL has been legally advised that it has a strong case on merits to recover such claims. Man Infraconstruction holds 63.64% stake in MTPL.

Valuation Parameters:

1. EV/EBITDA: 33.11
2. EV/Share: Rs 48
3. EV/Sale: 5.25
4. Market Cap/ Sale: 4.54
5. Debt to Equity: 0.47
6. RoE: 2.19%

Recent Update:

• MICL Realty LLP, group entity of Man Infraconstruction, has acquired development rights for redevelopment of three residential buildings at Naidu Colony, Ghatkopar, Mumbai, having approximately 1.5 lakhs square feet saleable area. Man Infraconstruction holds 46% in MICL Realty LLP. Man Infraconstruction bags rights to redevelop three buildings in Mumbai
• Port segment to aid growth in coming quarters: Man Infra

Block Deals:

Date	Exchange	Quantity	Price (Rs)	Value (Rs Crs)	Time
23-03-2016	BSE	500000	34.60	1.73	10:02
23-02-2016	BSE	520179	31.10	1.62	12:42
04-12-2015	BSE	979390	46.75	4.58	14:06
04-12-2015	NSE	6018745	47.85	28.8	14:20
04-12-2015	NSE	659016	46.50	3.06	14:06
29-01-2015	NSE	563650	43.00	2.42	14:03
29-01-2015	NSE	500000	43.20	2.16	15:06
29-01-2015	BSE	3000000	36.00	10.8	13:03
14-01-2015	NSE	1000494	36.15	3.62	09:29

 

Overview:

• Man Infraconstruction Ltd is engaged in construction business.
• The Company provides construction services for Port infrastructure, Residential, Industrial, Commercial and Road Infrastructure Projects.
• In the road infrastructure sector, the Company provides earthwork, paving, sewerage, storm water drainage, electrification, landscaping and arboriculture.
• The Company’s major projects include Jawaharlal Nehru Port Trust, Mundra Port, Chennai Port, Vallarpadam Port and the Pipavav Port.
• It sold half of its stake in Atmosphere Realty Private Ltd (ARPL) in the first half of FY15. Equity holding of the Company in ARPL now stands at 17.5%.

EPC order book stood at Rs 321 Crs as on 30th September, 2015

Real Estate Project Portfolio

Key Projects
Ports	Contract Value (Rs Crs)
Nhava Sheva International Container Terminal (NSCIT)	250
Mundra International Container Terminal (MICT)	190
Gateway Terminals of India (GTI)	250
International Container Transshipment Terminal (ICTT)	300

 

Key Projects
Residential	Location
Township Project – 6.5 mn sq. ft. consisting of 70 buildings of 7 storey each	Mahul, Mumbai
Orchid Woods –  3 Towers of 55 storey each; admeasuring 2mn sq. ft. in size	Goregaon, Mumbai
Neelkanth Greens –  8 Towers of 27 storey each; admeasuring 1.0mn sq. ft. in size	Thane, Maharashtra
Tata Housing – 8 Towers with a mix of 17-22 storey buildings admeasuring 0.9mn sq. ft. in size	Mulund, Mumbai
Blue Ridge – Project Blue Ridge – 8 residential Towers of 25 storey each; admeasuring 1.7mn sq. ft.	Pune, Maharashtra
Godrej Anandam – 6 Towers of 20 storey each; admeasuring 1.4mn sq ft. in size	Nagpur, Maharashtra
Kohinoor City –  8 Towers of 7 storey each; admeasuring 0.3mn sq. ft. in size	Kurla, Mumbai
Ambrosia – 1 Building of 40 storey admeasuring 0.5mn sq. ft. in size	Borivali, Mumbai

 

Key Projects
Commercial	Location
Kohinoor City – Commercial Complex, LEED Certified Hospital Building and School Building, Total Construction size of 1mn Sq. Ft	Kurla, Mumbai
Mobile Switching Center – Mobile Switching & Data Center having Basement + Stilt and 5 upper floors for Bharti Airtel,Total Construction size of 60,000 Sq. ft.	Navi Mumbai
Sports Complex – Sports Complex having modern facilities, Total Construction size of 0.1mn sq. ft.	Ulwe, Navi Mumbai
Sharad Pawar International School – School Building with State of the art facilities having Basement + Ground + 9 Floor, Total Construction size of 0.2 mn Sq. Ft	Chandivali, Mumbai
Stainless Steel Plant –  15,000 MTPA Stainless Steel Plant for Viraj Profiles Ltd	Boisar, Maharashtra
Gigaplex IT Park – IT Park Building for  B. Raheja Group, Total Construction size of 0.5mn sq. ft.	Airoli, Navi Mumbai

 

Management:

• Mr Berjis Desai is the Chairman
• Mr Parag K. Shah is the MD

Sr No.	Major Non-promoters	% Stake
1	Vanaja Sundar Iyer	1.01
2	Jhunjhunwala Rakesh Radheshyam	1.21
3	Eden Realtors Private Limited	1.61
4	Reliance Capital Limited	1.62
5	Sa 1 Holding Infrastructure Company P Limited	6.82
6	Suketu Ramesh Shah	1.97

 

Consolidated Financial Trend ~ Amt in Rs Crs

Particulars	FY 16	FY 15	FY 14	FY 13	FY 12	FY 11
Total Sales	227	275	397	447	489	505
PAT	13	47	29	48	54	63
EPS (Rs)	0.54	1.92	1.17	1.93	2.18	2.54
Long Term Debt	287	110	66	–	–	–
Equity Cap	49.5	49.5	49.5	49.5	49.5	49.5
Net worth	605	637	599	579	538	510
BV (Rs)	24	26	24	23	21.7	20.6