Broker’s call: Man Infraconstruction (Buy)

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Target: ₹240

CMP: ₹190.65

Man Infraconstruction Ltd (MICL) has strong visibility of cash flows from ongoing projects, with a current run rate exceeding ₹321 crore in Q1. The company is set to incur DM fees from its Tardeo-Aaradhya Avaan project, which is 70 per cent sold (of the launched tower). This project is unique for the company, being the tallest building in the city, with 100 per cent approvals.

MICL is expected to launch the remaining half of the building anytime after October 3rd. Additionally, the company has an upcoming project in Pali Hill, Bandra, where it has already received strong expression of interest (EOI), and a gated community in Ghatkopar East spanning over 10,000 sq mtr.

MICL has been facing issues in acquiring cluster redevelopment projects and is on a slow trajectory to acquire new developments/recognise profits. This is leading to a slower pace of growth than expected earlier. However, we believe the company will start recognising its projects by FY26 strongly. Its balance sheet strength and asset-light model is still a favourable aspect and the company is on a good trajectory if it continues to focus on correct acquisitions.

We reiterate our Buy recommendation on the stock with a target price of Rs 240.