Rakesh Jhunjhunwala, the Badshah of Dalal Street, never ceases to amaze. The gain or loss that he makes in one single day is more than the entire portfolio size of several big-ticket investors.
Yesterday, Rakesh Jhunjhunwala achieved the remarkable feat of gaining a mammoth amount of Rs. 260 crore in a single day after his crown jewel stock, Titan Industries, surged on the back of strong Q3FY15 results.
Today, 29th January 2015, Rakesh Jhunjhunwala bought a chunk of stock in a small cap company called “Man Infraconstruction”. The Badshah bought 30,00,000 shares at Rs. 36 each, making an investment of Rs. 10.80 crore.
|Man Infra Q2FY15 Results|
|Particulars (Rs cr)||Sep 2014||Sep 2013||%Chg|
The unique aspect of Man Infra is that it is involved in both activities, real estate and contracting. It is an integrated EPC (Engineering, Procurement and Construction) company with strong focus on Road, Port, Residential, Commercial and Industrial construction segments.
In the real estate segment, the Company has a number of on-going projects, including one for Tata Housing of 8 towers at Mulund, Mumbai. There are a couple of other residential and commercials building projects being executed.
In the contracting segment, Man Infra appears to have only one on-going BOT project, which is the Hadapasar-Saswad road in Pune. The length of the road is 41 km and the estimated cost of the project is Rs. 424 crore.
The other remarkable aspect of Man Infra is that it is a near zero debt Company with cash and cash equivalent of Rs. 111 crore as on March 31, 2014.
The future prospects for Man Infra appear to be bright if you bear in mind the fact that the entire construction and road space will open up. It is expected that there will be Rs. 600 billion investments in new ports and airports, power projects, waterways, urban and rural infrastructure and road building. Another area of opportunity is that of redevelopment of old buildings. According to a report in the DNA, about 17,000 old buildings in South Mumbai alone are going in for redevelopment. There are thousands of other buildings all over the city which can be candidates for redevelopment.
One indication that Man Infra is on a strong footing comes from its Q2FY15 results.
Of course, the unanswered question is why Rakesh Jhunjhunwala would be interested in Man Infra given its small size. The amount invested by him in the Company is not even equal to petty cash by the Badshah’s standards. Even if the stock triples or quadruples, it won’t “move the needle” for Rakesh Jhunjhunwala.