Review By on August 31, 2017
|
Issue Open: |
04-Sep-17 |
Face value: |
10.0 |
|
Issue Close: |
08-Sep-17 |
Issue size: |
1,836,000 |
|
Price: |
30.0 |
Fresh Issue: |
1,836,000 |
|
Bid Lot : |
4,000 |
Lead Manager: |
Navigant |
|
Listing: |
NSE EMERGE |
Registrar: |
Karvy |
Strategic movement into piling related to improve margins: Manav Infra (MIL) reported EBITDA/PAT margin of 13.1%/5.6% over FY17. Post starting operations in 2009 with excavation, MIL has strategically moved into higher premium job-work like piling which is expected to continue to uplift margins to mid-teens over FY18-FY20E. This expansion of margins will provide a natural entry barrier in segment, improve return ratios and deepen client relationship for MIL.
Purchase of equipments in auction rather than using equipments on lease: MIL has changed its strategy, to purchase second-hand equipment from developed countries – where equipments are sold as per regulatory concerns even though they have significant life span remaining from operations perspective. This strategy leads to saving on lease expense for non-operating hours and effective capital management. Demand forecast from infrastructure development and urbanization assures efficient utilization for new equipments.
Technical knowhow, domain expertise and client relationship to ensure order flow: MIL enjoys strong relationship with clients like Kanakia, JKIL, ACC, Man Infra, Nirmal Lifestyle etc. and as such possesses technical knowhow to deliver specific projects in a time bound manner making it a preferred partner for execution. This deep understanding of business and client relationship will continue to drive top line for MIL.
MIL is bringing an issue of INR 55.1mn at pre issue and post issue P/E(x) of 14.5 and 19.9 respectively vs. an industry P/E(x) of 32.4. MIL is a low debt company with Total D/E of 0.32 and high ROCE of 19.9%. Book value of per share is INR 16.6.
Concern: For detailed risk factors, refer to final prospectus
Objects of the Issue:
1) to part finance incremental working capital requirements of the Company
2) to meet general corporate purposes
3) to meet the expenses of the Issue
Company is engaged into the business of civil construction services such as piling, excavation, road construction, land leveling. They also provide a complete range of earth moving machines and construction equipments on rent for all type of infrastructure and construction related work. Its customers include medium to large size of construction and infrastructure companies like Kanakia Spaces Realty Private Limited, J Kumar Infra Projects Limited, ACC Limited, J P Infra Constructions, Simplex Infrastructure Limited, Man Infra Constructions Limited, Nirmal Lifestyle Limited amongst others.
|
Company Name: |
Face Value |
NAV/share |
RONW(%) |
EPS |
PE Ratio |
Net Profit(MN) |
Total Income(MN) |
|
J Kumar Infra |
5 |
183.6 |
10.0 |
13.9 |
20.6 |
1,055.0 |
14,375.0 |
|
RPP Infra |
10 |
76.8 |
14.9 |
10.6 |
23.1 |
240.0 |
3,663.0 |
|
Manav Infra Projects Ltd. |
10 |
24.3 |
21.2 |
5.2 |
5.8 |
240.0 |
183.0 |
|
Financial Statement |
(INR MN) |
|||
|
Particulars : |
FY 2014 |
FY 2015 |
FY 2016 |
FY 2017 |
|
Revenue |
119.71 |
148.38 |
164.41 |
180.77 |
|
Expenditure |
90.23 |
143.77 |
145.33 |
158.98 |
|
Operating Profit |
29.48 |
4.61 |
19.08 |
21.79 |
|
OPM(%) |
24.62 |
3.10 |
11.61 |
12.05 |
|
Other Income |
0.01 |
13.87 |
0.02 |
2.20 |
|
Depriciation |
10.61 |
8.19 |
5.97 |
5.69 |
|
EBIT |
18.87 |
10.29 |
13.14 |
18.29 |
|
Interest |
14.82 |
6.53 |
8.89 |
10.32 |
|
PBT |
4.05 |
3.75 |
4.25 |
7.97 |
|
Tax |
1.95 |
3.66 |
(1.80) |
(2.36) |
|
PAT |
2.10 |
0.09 |
6.05 |
10.33 |
|
NPM(%) |
1.76 |
0.06 |
3.68 |
5.71 |
|
Eq Cap |
42.44 |
42.46 |
48.16 |
58.46 |
|
Net worth |
42.36 |
42.42 |
43.47 |
48.61 |
|
Eq Share (No.'s) |
2000000.00 |
2000000.00 |
2000000.00 |
2000000.00 |
|
Weighted Avg. |
2000000.00 |
2000000.00 |
2000000.00 |
2000000.00 |
|
EPS |
1.05 |
0.05 |
3.02 |
5.16 |
|
RONW(%) |
0.05 |
0.00 |
0.14 |
0.21 |
Review By on August 31, 2017
Share India Securities Ltd.
Share India is a leading broking house of India with more than 25 years of experience. Share India have a retail client base of over 8,000 active clients spread across Punjab, Haryana, Delhi, Uttar Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. Company constitute ~2-3% of total volume at NSE on daily basis. Share India regularly suggest its clients for investment opportunities in SME segment.
The initial public offer (IPO) of Manav infra projects Ltd. offers an early investment opportunity in Manav infra projects Ltd.. A stock market investor can buy Manav infra projects IPO shares by applying in IPO before Manav infra projects Ltd. shares get listed at the stock exchanges. An investor could invest in Manav infra projects IPO for short term listing gain or a long term.
Read the Manav infra projects IPO recommendations by the leading analyst and leading stock brokers.
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Our recommendation for Manav infra projects IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Manav infra projects IPO.
The Manav infra projects IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Manav infra projects IPO allotment status to check.
