With the aim of ascertaining the eligibility of shareholders entitled to issue bonus equity shares of the company, shares of MAN Infrastructure declined by over 5% in Thursday’s deals ahead of the record date of November 19, 2021.
Last month, the Board of the Company approved the issue of Bonus Equity Shares in the ratio of 1 (one) new Equity Bonus Share of Rs. 2/- each for 2 (two) existing equity shares of Rs. 2/- is with the shareholders of each company.
“Man Infra has almost zero net debt and hence it has been able to meet its obligations on time despite delays in construction projects. We also take comfort from the fact that the company had an order book of Rs. 1218 crores as of FY21, which gives us good revenue visibility in the short term. Additionally we also like the fact that promoters have been gradually increasing their stake in the business over the last 2-3 years,” said Ujjwal Kumar, Research Analyst, Green Portfolio.
Man Infra is a leading construction company in India providing construction services for port infrastructure, residential, industrial, commercial and road infrastructure projects. From At Rs 25 per share level in October 2020, Man Infra shares are currently trading higher 90 each on BSE.
“There are a lot of tailwinds for the construction industry going forward and we believe that valuations in this area are also not very costly. Having said that, the construction industry is cyclical and in our view one should plan their entry and exit points while taking any position in such stocks,” Kumar said.
As per BSE shareholding pattern, Indian veteran investor Rakesh Jhunjhunwala holds 30,00,000 shares or 1.21% stake in Man Infra as of September 2021. Their stake remains unchanged from the previous quarter of April-June.
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