This Microcap Realty stock deals in construction and infrastructure development including commercial and residential projects, while offering other services related to project management and execution was up by 11 percent in the day’s trade after the company acquired a Residential Project in Goregaon worth Rs. 22 crore.
Price Action
With a market capitalization of Rs. 788 Crores, the shares of Meghna Infracon Infrastructure Limited were up by 11 percent in the day’s trade touching a day’s high of Rs. 758.40 per share. The stock was reiterated from the day’s high and was trading at Rs. 725.25 which is 6.35 percent up from the previous closing price of Rs. 681.95 apiece. The stock has delivered a 213 percent return over the past year and outperformed the Nifty Index. The stock has delivered a multi-bagger of 4,459 percent returns over the past five years.
What Happened
The rise in stock price was due to the company announcement of of New Residential project named “RIVIERA” in Goregaon, Mumbai. This move has helped the company to move into the luxury real estate in Mumbai. The location is near to the schools, college, railway station, hospitals, and entertainment hubs.
This project has an estimated sale potential of Rs. 22 crore with a construction built-up area of 30,000 Sqft. This project is executed through Meghna Aakar Constructions, a subsidiary of the company.
Management Commentary
Vikram Jayantilal Lodha, the Managing Director said on the project that “The launch of “RIVIERA” marks steping a significant milestone in our journey towards becoming the preferred luxurious real estate developers in Mumbai. The construction work at the site has been commenced and shall be executed as per the scheduled timelines. With the launch of “RIVIERA,” we introduced an innovative community living concept offering residences in 1 and 2 BHK along located at prime area of Goregaon West”.
About the Company
Meghna Infracon Infrastructure Limited was established in 2007. It is one of the players in the Indian construction and infrastructure sector. They focus on residential and commercial real estate development and undertake projects that improve urban living. Their business model revolves around strategic land acquisition, project execution, and timely delivery of quality infrastructure. Meghna Infracon aims to leverage innovative construction techniques and sustainable practices to meet growing market demands while ensuring profitability and stakeholder satisfaction.
Products and Services
The company specializes in construction and infrastructure development. They offer services in commercial and residential real estate while focusing on project execution and management. Additionally, Meghna Infracon engages in land acquisition and urban development, aiming to improve infrastructure through innovative construction practices and timely delivery of projects to meet market demands.
Financials & Ratios
Its Revenue from operations in the September 2023 quarter had zero sales and in the September 2024 quarter, the company had a revenue of Rs. 3.29 crore with net profits standing at Rs. 0.30 crore. Quarterly, the company saw a decline in revenue by 77 percent and net profit declined by 81 percent.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 46.92 percent in Meghna Infracon Infrastructure, Foreign Institutional Investors (FII) holding around 0.89 percent, and the public holding around 52.18 percent.
Written by Santhosh S
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