Shares of Man Infraconstruction have delivered multibagger returns this year as the infrastructure construction company's stock has rallied more than 300% in the calendar year 2021. This Rakesh Jhunjhunwala portfolio stock has surged from ₹23 per share to ₹96.99 per share since the beginning of this year (year-to-date), delivering nearly 320% return to its shareholders. Meanwhile, the benchmark index BSE Sensex gained 21% during the said period.
Ace investor Rakesh Jhunjhunwala, widely popular as the Big Bull of the Indian stock market, owns 30 lakh shares or a 1.21% stake in the infrastructure company, according to the September holding pattern on the BSE. Jhunjhunwala bought these shares way back in 2015 for ₹36 per share, amounting to ₹10.8 crore. At the current market price of ₹97, the value of Jhunjhunwala’s stake in the company is estimated to be ₹29.1 crore.
On Thursday, Man Infraconstruction shares gained as much as 3.7% to hit an intraday high of ₹96.90 on the BSE, in line with the broader market. The stock price opened higher at ₹96.80, against the previous close price of ₹93.40. The stock was trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
The Man Infra share hit its 52-week high of ₹107.90 on November 17, 2020, while it touched a 52-week low of Rs 18.81 on December 22, 2020.
The multibagger stock has climbed 145% in six months, while it gained over 5% in the last one month. The stock has given higher returns of nearly 270% over the last five years.
Headquartered in Mumbai, Man Infraconstruction operates two business verticals - construction and real estate development. It provides construction services for ports, residential, commercial & industrial, and road construction, with projects spanning across India.
Last month, the company in an exchange filing said it was jointly developing a residential high-rise tower at Tardeo, next to Bhatia Hospital in Mumbai, under the asset-light Development Management (DM) model. MICL Properties LLP, a subsidiary of Man Infraconstruction, is jointly developing the project, which has a carpet area of around 6 lakh square feet available for sale. The project is expected to generate around ₹3,000 crore over the next 4 to 5 years.
For the second quarter ended September 30, 2021, Man Infra posted a consolidated net profit of ₹111 crore as compared to ₹1.4 crore in the year-ago period, registering a year-on-year growth of 7,633%. The company’s consolidated revenue jumped 480% to ₹247 crore in Q2 FY22, from ₹42.6 crore in Q2 FY21. The consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA), a measure of a company's overall financial performance, surged 482% Y-o-Y to ₹77.7 crore.
As of September 30, 2021, the company has invested around ₹619.40 crores in its own real estate development projects.