M & B Engineering IPO Review

M&B Engineering Ltd is one of India’s leading design led engineering solutions provider. The business is structured into (a) Phenix division which provides comprehensive solutions for PEBs and complex structural steel components; and (b) Proflex division which provides self-supported steel roofing solutions. They offer their customers comprehensive turn-key solutions which includes project design, engineering, manufacturing and erection in accordance with customer requirements across industrial and infrastructure segments.

The company is led by Promoters, GIRISHBHAI MANIBHAI PATEL has over 40 years of experience, CHIRAG HASMUKHBHAI PATEL has over 31 years of experience, MALAV GIRISHBHAI PATEL has over 24 years of experience, BIRVA CHIRAG PATEL has over 16 years of experience, VIPINBHAI KANTILAL PATEL has over 40 years of experience and ADITYA VIPINBHAI PATEL has over 13 years of experience in the preengineered buildings, roofing, construction and other manufacturing sector.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 9,968.89 Million, ₹ 8,082.60 Million and ₹ 8,890.04 Million. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,347.12 Million, ₹ 928.22 Million and ₹ 749.64 Million. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 770.47 Million, ₹ 456.34 Million and ₹ 328.92 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 15.41 and post-issue EPS of ₹ 13.48 for FY24. The pre-issue P/E ratio is 24.98x, while the post-issue P/E ratio is 28.55x against the Industry P/E ratio is 29x. The company's ROCE for FY24 is 24.80%, ROE for FY24 is 25.13% and RoNW is 25.14%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of M & B Engineering showing listing gains of 5.06 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the M & B Engineering Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.