1. At a Glance
Meghna Infracon is a Mumbai-based real estate developer with recent forays into redevelopment projects in Santacruz and Prabhadevi. FY25 Net Profit zoomed to ₹9.8 Cr on revenue of ₹39.9 Cr, but at P/E of 131, you’re paying more than DLF… for a company whose book value is ₹10.1. 😂
2. Introduction with Hook
Every bull market throws up a few mystery stocks — small equity, wild moves, big claims, tiny balance sheets. Meghna Infracon is that kid in class who suddenly shows up in designer clothes, new shoes, and says “papa builder hai.”
With a 1:1 bonus, multi-bagger move, and realty buzzwords flying around — this stock is lighting up screens. But is it “valuation justified” or just a well-staged pump show?
3. Business Model (WTF Do They Even Do?)
Meghna Infracon used to dabble in shares and securities trading, then pivoted to hotels, and now is into:
🏗️ Real estate development, especially
- Redevelopment of prime Mumbai locations (Dadar, Santacruz)
- Mid-sized residential/commercial mix
- High ROCE due to low fixed asset base and minimal ongoing capex
But is there actual construction or just paper project announcements?
4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | Value |
|---|---|
| Revenue (FY25) | ₹39.88 Cr |
| Net Profit | ₹9.79 Cr |
| OPM | 28.4% |
| ROCE | 69.9% 😳 |
| ROE | 52.6% 🔥 |
| EPS (FY25) | ₹4.26 |
| TTM Sales Growth | -25% (yes, minus) |
| TTM PAT Growth | +191% 🚀 |
This is like having a gym membership decline but somehow gaining 6-pack abs. Make it make sense.
5. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP (post-bonus) | ₹558 |
| P/E | 131x 🤯 |
| P/B | 55.1x (Book value ₹10.1) |
| Market Cap | ₹1,211 Cr |
| FV | ₹10 |
🧮 Fair Value Range (EduGuess):
Assume EPS growth to ₹6 by FY26, and a real estate P/E of 20–30x =
FV Range = ₹120 – ₹180
Current valuation = SpaceX without a rocket.
6. What’s Cooking – News, Triggers, Drama
- 🏢 Dadar/Prabhadevi Project announced, ₹80 Cr revenue potential
- 🏗️ Santacruz Redevelopment, ₹37 Cr expected
- 🎁 1:1 Bonus Issued (July 2025)
- 🧾 No major debt, but cash flow neutral despite profit
- 🧐 No physical execution details, no RERA numbers, no site photos?
- 📈 Stock up >150% in 1 year, +200% in 3 years
- 💹 FII entry since Dec 2023, now at 1.93%
7. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | Mar 2025 |
|---|---|
| Equity Capital | ₹10.86 Cr |
| Reserves | ₹11.10 Cr |
| Borrowings | ₹3.29 Cr |
| Total Assets | ₹35.07 Cr |
| Fixed Assets | ₹0.97 Cr 🤏 |
| Investments | ₹0.48 Cr |
| Other Assets | ₹33.62 Cr |
| Cash | Very low; working capital mostly receivables |
Balance sheet is light, margins heavy, promises heavier. Suspiciously low asset base for a “real estate company”.
8. Cash Flow – Sab Number Game Hai
| FY25 Cash Flow |
|---|
| 🏃 From Ops |
| 🛠️ Investing |
| 💸 Financing |
| 🪙 Net Cash |
Cash flows match profits. But given ₹80–100 Cr project announcements — this cash pile won’t even fund the parking lot excavation.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| OPM | 28.4% 🔥 |
| ROCE | 69.9% 🚀 |
| ROE | 52.6% 💰 |
| Debtor Days | 65 ↑ |
| Inventory Days | 333 😵 |
| CCC | 289 days |
| Tax Rate | ~12% (why so low?) |
| Payout Ratio | 1.18% |
Margins are hot, but working capital stretch and inventory pile-up = signs of revenue recognition vs actual billing.
10. P&L Breakdown – Show Me the Money
| Quarter | Sales | OPM | Net Profit |
|---|---|---|---|
| Q1 FY25 | ₹14.5 Cr | 14.4% | ₹1.6 Cr |
| Q2 FY25 | ₹3.29 Cr | 16.1% | ₹0.30 Cr |
| Q3 FY25 | ₹9.97 Cr | 49.4% | ₹3.62 Cr |
| Q4 FY25 | ₹12.12 Cr | 31.3% | ₹4.15 Cr |
How does profit rise while revenue fluctuates wildly? High-margin recognition at random intervals is a classic red flag 📛.
11. Peer Comparison – Who Else in the Game?
| Stock | Sales | P/E | ROCE | ROE | CMP/BV |
|---|---|---|---|---|---|
| DLF | ₹8,000 Cr | 45x | 6.5% | 11% | 4.84x |
| Macrotech | ₹13,800 Cr | 51x | 15.6% | 14.7% | 6.98x |
| Godrej Prop | ₹4,900 Cr | 56x | 6.6% | 9% | 3.93x |
| Meghna Infracon | ₹40 Cr | 131x | 69.9% | 52.6% | 55.1x 🤯 |
So basically… Meghna is claiming to be India’s most efficient realty company, but on ₹40 Cr revenue. Ok then 🙃.
12. Miscellaneous – Shareholding, Promoters
| Holder | % Stake |
|---|---|
| Promoters | 46.92% |
| FIIs | 1.93% (entered recently) |
| Public | 51.14% |
| No. of shareholders | Grew 10x in 1 year (from 98 to 1,347) |
Steady promoter stake, slow FII nibbling, and retail frenzy post bonus. Classic momentum cocktail.
13. EduInvesting Verdict™
“When P/E is 131 and revenue is ₹40 Cr… It’s not real estate. It’s real escape.”
Meghna Infracon is the kind of company where the press release is more detailed than the project site. The business model keeps changing, and yet profits jump, margins swell, and the stock surges.
For now, this stock is surfing the wave of narrative + momentum. But valuation defies gravity, and the numbers are crying out for more disclosures and due diligence.
🧃 Either it becomes a real DLF one day… or we look back and call it the “Meghna Mirage.”
🧮 Tags: Meghna Infracon analysis, real estate penny stocks, bonus issue stocks, Mumbai redevelopment projects, microcap realty, BSE 538668
✍️ Written by Prashant | 📅 July 10, 2025
