MEP Infrastructure Developers Limited

Industrials — Infrastructure Operations · BSE

₹0.68₹0.00 (0.00%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

The 60-second version of MEP Infrastructure Developers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

MEP Infrastructure Developers Limited engages in the construction, operation, and maintenance of road infrastructure in India. The company operates in two segments, Toll Collection, Operation and Maintenance; and Construction.

IndustryInfrastructure Operations

SectorIndustrials

Annual revenue₹73 Cr

How does it make money?

Turns over ₹73 Cr a year. Of every ₹100 of sales, about ₹-1169 reaches shareholders as profit, with ₹-731 left at the operating level before interest, tax and depreciation.

Who are its competitors?

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

Compared side by side in Peers ↓

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved -92% while net margin moved +5026% 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-92%

Margin effect+5026%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 84% over 2 years.
Cash generation is improving
Free cash flow is up 77% over 2 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -10.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹855 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 767.4 points, from 35.9% to -731.4%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -2.7x to -10.4x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.59 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 84% over 2 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 35.9% to -731.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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
4 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

1EBITDA margin holds above -733%✓ -731.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -10.4x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹501 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹12 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-16.78

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

224.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-295.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹16 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

0.2x

ROA

-15.2%

Weak

Assets generate little profit

Operating Margin

-1629.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.59

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.78

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.7 / 0.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.0

Neutral momentum

Financial Trend (3-Year)

Metric	FY22	FY23	FY24	2Y CAGR
Revenue	₹967 Cr	₹245 Cr	₹73 Cr	-72.5%
EBITDA	₹348 Cr	₹3 Cr	-₹535 Cr	—
EBITDA Margin	35.9%	1.1%	-731.4%	—
PAT (Net Profit)	-₹221 Cr	-₹216 Cr	-₹855 Cr	—
EPS	₹-12.02	₹12.24	—	—
Total Debt	₹2,097 Cr	₹414 Cr	₹331 Cr	-60.3%
Free Cash Flow	₹283 Cr	₹371 Cr	₹501 Cr	+33.0%

🔴 Revenue has shrunk at 72.5% a year over 2 years.

🔴 EBITDA has turned negative, from ₹348 Cr to -₹535 Cr.

🔴 EBITDA Margin has fallen from 35.9% to -731.4% over 2 years (-767.4 pts).

🟢 Total Debt has shrunk at 60.3% a year over 2 years.

🟢 Free Cash Flow has grown at 33.0% a year over 2 years.

Balance Sheet & Cash Flow — FY2024

Total Assets

₹2,227 Cr

Total Liabilities

₹3,565 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹503 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

4.4%

Insider Holding

34.5%

Corporate Actions

Ex-Dividend Date

29 Aug 2019

Peer Comparison

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

Recent News

1 mixed5 general

MEP Infrastructure Developers vs Nifty 50: Returns Compared

Univest, 07 Oct

MEP Infrastructure Developers Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

MEP Infrastructure confirms no share encumbrance in FY26

scanx.trade, 06 Jun

MEP INFRASTRUCTURE Share Price

Upstox, 05 May

MEP Infrastructure Developers Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Why Is MEP Infrastructure Developers Share Price Falling Key Reasons 2026

Univest, 17 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

MEP Infrastructure Developers Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 3 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑