1. At a Glance
The PEB and roofing veteran from Gujarat is hitting Dalal Street with a ₹650 Cr issue (₹275 Cr fresh + ₹375 Cr OFS). Price band ₹366–₹385, listing Aug 6, 2025. With 9,500+ projects executed and exports to 22 countries, the story is solid. But at a post-IPO P/E of 28.5×, the valuation has already climbed the ladder.
2. Introduction – The Analogy Party
Imagine a roofer telling you he’ll cover your house for ₹10,000, but then charges ₹15,000 because “premium steel”. That’s M&B’s IPO: solid business, but priced with a premium. PAT grew 69% in FY25, debt manageable, order book fat—but will this roof hold during market storms?
3. Business Model – WTF Do They Even Do?
M&B isn’t a fancy tech unicorn. They make Pre-Engineered Buildings (PEBs) and Self-Supported Steel Roofs.
- Phenix Division: Designs & manufactures PEB frames, claddings, standing seam roofs.
- Proflex Division: Mobile roofing units fabricate & install roofs onsite.
Industries served: logistics, power, textiles, F&B, railways. Basically, they build the stuff that holds your stuff.
4. Financials Overview – Big Numbers
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 889 | 808 | 997 |
| EBITDA | 66 | 80 | 126 |
| PAT | 33 | 46 | 77 |
| Assets | 559 | 633 | 849 |
| Debt | 149 | 205 | 186 |
Verdict: Topline stumbled in FY24 but bounced back. PAT scaling well.
5. Valuation – What’s This Stock Worth?
At ₹385, P/E is 28.5×, P/B 6.3×.
Fair Value Range: ₹330–₹360.
DCF says ₹340. Market pricing is a roof too high.
6. What-If Scenarios
- Bull Case: Order book converts flawlessly, exports boom → FV ₹400+
- Base Case: Normal execution, stable margins → FV ₹350–₹370
- Bear Case: Delays, margin squeeze → FV ₹280–₹300
7. What’s Cooking (SWOT)
Strengths: Market leader in self-supported roofing, exports to 22 countries, order book ₹842 Cr.
Weaknesses: Cyclical demand, topline volatility.
Opportunities: Capex in solar + IT upgrade, rising PEB demand.
Threats: Steel price swings, aggressive pricing by peers.
8. Balance Sheet – Asset Drama
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 559 | 633 | 849 |
| Net Worth | 181 | 233 | 307 |
| Debt | 149 | 205 | 186 |
Debt: Not scary, but still lurking.
9. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops | 35 | 60 | 95 |
| Invest | (50) | (80) | (110) |
| Finance | 20 | 30 | (70) |
Comment: Like a freelancer—busy but cash trickles in.
10. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 25.1% |
| ROCE | 24.8% |
| PAT Margin | 7.7% |
| D/E | 0.33 |
| P/E | 28.5× |
Punchline: ROE is hot, P/E is overcooked.
11. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 889 | 808 | 997 |
| EBITDA | 66 | 80 | 126 |
| PAT | 33 | 46 | 77 |
Comment: Topline wavers, bottom line sprints.
12. Peer Comparison – Who’s at the Wedding?
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Everest Ind. | 2,100 | 140 | 22× |
| Pennar Engg. | 1,800 | 110 | 24× |
| M&B Engg. | 997 | 77 | 28.5× |
Least drunk guest? Not really, it’s sipping premium scotch.
13. EduInvesting Verdict™
M&B Engineering IPO has a strong order book, global footprint, and rising profitability. But the pricing already bakes in perfection.
A solid industrial play—but you’re paying champagne prices for roofing sheets.
Written by EduInvesting Team | 27 July 2025
Tags: M&B Engineering, PEB Industry, Roofing Solutions IPO, ₹650 Cr IPO, EduInvesting Premium
