Story:Asahi Infrastructure is in the business of constructing low cost and affordable housing.Government policy to enter into Public-Private Partnerships (PPP) and Build Operate Transfer (BOT) agreements to address housing and infrastructure (water, sewer etc.) shortages bodes well for future work in the industry. Moreover, the residential segment constitutes 75% of the growing real estate market and the trend toward greater urbanisation is further increasing housing demand.The company plans to add fly ash bricks and pre-cast ferro-cement capacity in the near future.Management issued warrants to promoters and raised capital of 30cr in the within the last two years, which has materially enhanced the scale of the business. The company appears to have received several work orders in the last year well in excess of 200cr. However, it hasn’t reported balance sheets or cash flow statements within the last year.Prior to raising capital, the company reported equity share capital of only about 4cr and after, it rose to about 34cr (as at 31st March, 2010). Hence, past performance on a low capital base is largely irrelevant to expected future performance.The business is primarily exposed to the real estate cycle and intense competition in its field. It is also exposed to the fortunes of the IT industry (driving demand), contractual/legal risks, environmental liabilities, natural catastrophes etc.Since management don’t have a track record operating at this scale, partnering with them appears to be akin to taking venture-capital type risks that we are unable to evaluate intelligently.