Subscribe to Man Infraconstruction IPO at cut-off: Reliance Money

MUMBAI: Reliance Money has advised investors to ‘Subscribe’ to initial public offering of Man Infraconstruction at cut-off price.

Man Infraconstruction is a construction contractor in real estate and infrastructure segment. It undertakes construction contracts as well as provides project management and consultancy services for port infrastructure,
residential, industrial, commercial and road infrastructure projects.

MIL has a healthy and diversified order book across its business segments. Its order book stands at Rs 20209.25mn, as on 31st Dec, 09 to be executed over a period of next 24-27 months providing robust revenue visibility going ahead.

"At the higher price band of Rs 252, the stock quotes at P/BV of 3.8x post dilution and a PE of 14.1x its FY10 annualised EPS of Rs 17.9. Looking at the strong operational efficiency with high growth opportunity in the construction industry, along side its healthy cash flow generation with negligible debt augers well for the company, hence we believe MIL provides a good opportunity for investors and recommend 'Subscribe' at cut-off to the issue," the report said.