Does Manav Infra Projects (NSE:MANAV) Deserve A Spot On Your Watchlist?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Manav Infra Projects (NSE:MANAV). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.

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Manav Infra Projects' Improving Profits

In the last three years Manav Infra Projects' earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. To the delight of shareholders, Manav Infra Projects' EPS soared from ₹1.69 to ₹2.45, over the last year. That's a fantastic gain of 45%.

It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. Manav Infra Projects maintained stable EBIT margins over the last year, all while growing revenue 71% to ₹245m. That's encouraging news for the company!

In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers.

See our latest analysis for Manav Infra Projects

Manav Infra Projects isn't a huge company, given its market capitalisation of ₹239m. That makes it extra important to check on its balance sheet strength.

Are Manav Infra Projects Insiders Aligned With All Shareholders?

As a general rule, it's worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. The median total compensation for CEOs of companies similar in size to Manav Infra Projects, with market caps under ₹18b is around ₹3.8m.

The CEO of Manav Infra Projects was paid just ₹1.2m in total compensation for the year ending March 2025. You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.

Should You Add Manav Infra Projects To Your Watchlist?

If you believe that share price follows earnings per share you should definitely be delving further into Manav Infra Projects' strong EPS growth. The fast growth bodes well while the very reasonable CEO pay assists builds some confidence in the board. Based on these factors, this stock may well deserve a spot on your watchlist, or even a little further research. We don't want to rain on the parade too much, but we did also find 5 warning signs for Manav Infra Projects (4 are potentially serious!) that you need to be mindful of.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in IN with promising growth potential and insider confidence.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.