M & B Engineering Limited

Industrials — Engineering & Construction · NSE

₹292.90+₹20.20 (+7.41%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of M & B Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

M & B Engineering Limited, an engineering company, engages in the design, manufacturing, and installation of pre-engineered metal buildings, self-supported steel roofing, and complex steel components.

IndustryEngineering & Construction

SectorIndustrials

Employees1,631

Annual revenue₹1,260 Cr

How does it make money?

Turns over ₹1,260 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,631 employees supports ₹77.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹77.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.1% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 16.9% and earnings to grow about 30.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.9%

Est. earnings growth+30.0%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +43% while net margin moved +97% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+43%

Margin effect+97%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

23.3x

1.3Y Median

23.0x

16 monthly readings · mean 23.2x · range 14.7x–33.7x

Sector Median

30.1x

median of 3 sector peers

🟡Currently trading close to its 1.3y median of 23.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 23% below the peer median of 30.1x.

vs. its own history

Fair

23.0x median over 16 months · +1%

vs. sector peers

Cheap

30.1x median of 3 peers · -23%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.2x

PEG

0.56

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 8.1% to 11.8% over 3 years.
Debt is being paid down
Total debt is down 44% over 3 years.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 18.2% to 14.1% — each rupee of shareholder capital earns less than it did.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 101% against revenue up 43% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 100% against revenue up 43% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 8.1% to 11.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 44% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 101% against revenue up 43%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 18.2% to 14.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 12.7% CAGR
Latest reported year was 22.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹64 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹1,674 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.53x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.58

Profitable

Profitable on a per-share basis

ROE

14.1%

Moderate

Moderate capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

22.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.5%

Modest

Slow profit growth

Dividend Yield

0.34%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹64 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

11.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.3%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

263.0 / 267.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

64.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹880 Cr	₹795 Cr	₹989 Cr	₹1,260 Cr	+12.7%
EBITDA	₹71 Cr	₹88 Cr	₹132 Cr	₹149 Cr	+27.9%
EBITDA Margin	8.1%	11.0%	13.4%	11.8%	—
PAT (Net Profit)	₹33 Cr	₹46 Cr	₹77 Cr	₹93 Cr	+41.2%
EPS	₹5.76	₹7.99	₹13.48	₹16.94	+43.3%
ROE	18.2%	19.6%	25.1%	14.1%	—
ROCE	22.2%	28.2%	31.7%	20.4%	—
Total Debt	₹150 Cr	₹205 Cr	₹191 Cr	₹84 Cr	-17.8%
Free Cash Flow	₹11 Cr	-₹72 Cr	-₹7 Cr	-₹64 Cr	—

🟢 Revenue has grown at 12.7% a year over 3 years.

🟢 EBITDA has grown at 27.9% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 11.8% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 41.2% a year over 3 years.

🟢 EPS has grown at 43.3% a year over 3 years.

🔴 ROE has fallen from 18.2% to 14.1% over 3 years (-4.1 pts).

🔴 ROCE has fallen from 22.2% to 20.4% over 3 years (-1.8 pts).

🟢 Total Debt has shrunk at 17.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹64 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,161 Cr

Total Liabilities

₹504 Cr

Cash & Equivalents

₹96 Cr

Operating Cash Flow

-₹31 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

7.3%

Insider Holding

70.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

10 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹367.5

+25.5% vs CMP

Target Range

₹340 – ₹395

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive2 mixed3 general

M AND B ENGINEERING Share Price Rise and Valuation View

Univest, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

M & B Engineering Dividend 2026: ₹1.00, Record Date 10 Sep

INDmoney, 12 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

MBEL Stock Price and Chart — NSE:MBEL

TradingView, 14 Jul

Analyst Estimates: Here's What Brokers Think Of M & B Engineering Limited (NSE:MBEL) After Its First-Quarter Report

Simply Wall Street, 13 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

M&B Engineering Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

M & B Engineering reaffirms 25% revenue growth guidance for FY27

scanx.trade, 10 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑