Multibagger Stock: Man Infraconstruction stock rises 37% in 5 weeks, advances 1300% in 5 years

Multibagger Stock: Man Infraconstruction, one of the leading construction and real estate development companies, has seen remarkable growth in its shares in recent years, delivering phenomenal returns to its shareholders in a short period.

The company's shares have been on an upward trajectory over the last five weeks, gaining 37% to date, following the company’s stellar performance in the second quarter. This recent rally has propelled the shares to gain nearly 1300% over the last five years. During this period, the stock ended two calendar years—CY21 and CY23—with impressive returns of 348% and 192%, respectively.

What's behind Man Infraconstruction's stock price rally?

The strong financial performance along with a growing EPC order book and a robust real estate pipeline, have propelled the stock to higher levels on Dalal Street, earning it the status of a wealth creator.

In the first half of the current fiscal year, the company achieved remarkable sales of ₹900 crore in H1FY25, up 282% YoY from ₹235 crore in H1FY24. Collections surged to ₹670 crore in H1FY25, surpassing ₹465 crore in the same period last year. 

The company also recently received a credit rating upgrade to CARE A+, Stable, for long-term facilities, reflecting its financial strength.

Looking ahead, the company's real estate project pipeline remains strong, with approximately 4.0 million square feet of upcoming projects in iconic locations across MMR, including Marine Lines, BKC, Pali Hill (Bandra W), Vile Parle W, Goregaon W, and near Dahisar. These developments enhance long-term revenue potential and market presence.

Meanwhile, its EPC order book stood at ₹653 crore at the end of the September quarter.

The company's balance sheet also remains strong as it continues to be net debt-free, with a cash and bank balance of ₹520 crore at consolidated levels, providing significant strength for future growth. The company’s total investments in real estate projects surpassed ₹1,000 crore, as per the company's recent regulatory filing.

Man Infraconstruction is headquartered in Mumbai and has two business verticals: EPC (Engineering, Procurement, and Construction) and Real Estate Development. Its EPC division has delivered over 50 million sq. ft. of construction across India. This division earns income from infrastructure projects such as ports, institutional buildings, government residential projects, and its own residential developments, its FY24 annual report showed.

Well-Positioned

Ongoing infrastructural advancements, stable mortgage rates, and clear monetary and regulatory measures create a conducive environment for sustained growth in India's residential real estate sector. Poised for a multi-year bull run, demand is expected to remain strong in 2025, particularly in the luxury segment, according to the Anarock report.

Additionally, the country is also experiencing high demand in handling cargo traffic largely driven by energy products—POL, crude, coal, and containers. The volume of cargo traffic handled at the government-run Indian major ports has increased by 4.7% to 818 million tonnes (MT) in FY24 compared to 783 MT achieved in FY23.

Over the last five years, cargo capacity has also grown at 1.8% CAGR from FY19-FY23. Going ahead over the next five years, CRISIL MI&A expects ports to add a capacity of 500-550 million tonnes at a CAGR of 2-4%. About 60-70% of capacity addition is expected to come from major ports, especially Visakhapatnam, Paradip, Kandla, Ennore, Mumbai, Tuticorin, and JNPT.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.