Man Infra Share Price: Axis Securities has maintained BY call on Man Infraconstruction after Q3 FY26 results but trimmed its target by Rs 60 per share.
Man Infraconstruction is an integrated EPC (Engineering, Procurement, and Construction) company, headquartered in Mumbai. It is primarily engaged in civil construction and real estate development.
Let's take a look at brokerage commentary below and the target price:
Recommendation Rationale
Subdued Performance: MICL reported a subdued quarterly performance, with the launch of the Artek Project at BKC contributing Rs 140 Cr to total pre-sales of Rs 447 Cr. Pre-sales were in line with estimates, reflecting a 26% YoY decline. Sustenance sales remained weak and were primarily driven by Aaradhya Parkwood in Dahisar, Aaradhya Aavan Tower at Tardeo, and Atmosphere Tower G in Mulund. Collections stood at Rs 294 Cr, supported by timely execution across ongoing projects. The company sold 1.2 Lc sq. ft. during the quarter. The EPC order book stood at ~Rs 300 Cr as of Q3FY26.
Upcoming Launches: The company has ~2.42 Mn sq. ft. of upcoming projects and ~2.5 Mn sq. ft. of ongoing developments. Key upcoming launches include the Marine Lines project with sales potential of Rs 3,100 Cr, the Pali Hill project exceeding Rs 500 Cr, and Royal Netra with sales potential above Rs 4,000 Cr. These projects are expected to enhance revenue visibility and strengthen its presence across key micro-markets. The recently launched BKC Artek project has demonstrated healthy initial traction.
Robust Balance Sheet: The company received the balance proceeds from the preferential issue, raising Rs 512 Cr through the conversion of 3 Cr equity warrants at Rs 155 per share. Of this, Rs 269 Cr has been deployed towards working capital, new project acquisitions, and general corporate purposes. MICL maintains a net positive balance sheet, with cash of Rs 723 Cr and a net debt/equity ratio of -0.3. Total real estate sales visibility stands at Rs 11,600 Cr, including ongoing, upcoming, and unsold inventory of completed projects.
Sector Outlook: Positive
Company Outlook & Guidance: MICL’s outlook is subdued due to slower launches and sustenance sales. Management has guided for FY26E pre-sales for 25% growth YoY, which we believe is difficult to meet post 9MFY26 results. We believe the company will show flat YoY pre-sales growth and lower our estimates.
Current Valuation: 6X Sep’27E EBITDA
Current Target Price: Rs 130/share; (Earlier TP: Rs 190 /share).
Valuation & Recommendation: We expect limited growth in upcoming bookings. However, following the sharp correction in the stock price, valuations have turned attractive, leading us to maintain our BUY rating, albeit with a relatively modest upside potential of 11% from the CMP.
Man Infraconstruction shares closed 1.7 per cent lower at Rs 111.30 on Friday (Feb 13).
