Investors are gearing up for the INR 650 crore M&B Engineering IPO, opening on 30 July 2025. Known for its towering steel structures and sweeping self-supported roofs, the company has left its mark on factories, warehouses, and infrastructure projects across India and beyond.
With an INR 8,428 crore order book, marquee clients like Adani Group, Tata Advanced Systems, and Intas Pharma, and margins at their highest in years, the IPO comes at a time when industrial construction demand is booming.
In this M&B Engineering IPO Review, we dissect the company’s business model, revenue streams, financial performance, valuation, strengths, and risks to help you decide whether to ride this offering or step aside.
1. Company Overview
M&B Engineering, a two-decade-old player in India’s Pre-Engineered Buildings (PEB) and self-supported roofing industry, operates through its Phenix (PEB) and Proflex (roofing) divisions. The company has built a strong presence across manufacturing, logistics, infrastructure, and industrial projects.
With manufacturing facilities in Gujarat and Tamil Nadu, the company commands a total annual capacity of 1,03,800 MTPA for PEBs and 1.8 million sq.m. for roofing. Its execution record is formidable:
- Phenix: Over 1,600 projects across 22 countries, delivering 6,40,000 MT of steel structures.
- Proflex: Over 7,900 projects across India, covering 18.5 million sq.m. of roofing.
The client roster includes industry giants— Adani Group, Tata Advanced Systems, Intas Pharmaceuticals, Haldiram Foods — and the company boasts relationships with over 2,000 customer groups. This entrenched market presence gives it a competitive edge in a sector where credibility and delivery track record are critical for winning contracts.
Note: M&B Engineering’s diversified client base and multi-decade experience are strong competitive moats, but its near-exclusive reliance on India for revenues (95%+) leaves it exposed to domestic economic cycles.
2. M&B Engineering IPO Review: Business Model, Revenue Streams & Order Book
Business Model: M&B operates on a custom-engineered, project-based model. Clients commission bespoke steel structures or roofing systems, which are manufactured in-house and installed at project sites. Revenues are recognised progressively as milestones are met, giving visibility but also making the business sensitive to project delays.
Revenue Streams (FY25):
- Pre-Engineered Buildings (PEB): 77% of revenue — driven by warehouses, factories, and industrial parks.
- Self-Supported Roofing: ~23% of revenue — used in FMCG plants, logistics hubs, stadiums.
- Other income is negligible (<1%), indicating a pure-play focus on its core segments.
Customer Concentration:
- 57% of FY25 revenue from repeat customers — a positive sign for stickiness, but it underscores dependency.
- The top five clients account for 42.64% of revenues.
- This dependence magnifies the impact if even one major customer scales back orders.
Order Book Strength: As of 30 June 2025, the company’s order book stood at INR 842.84 crore. Sector-wise exposure:
- Warehousing & Logistics: ~35%
- Manufacturing: ~30%
- Infrastructure: ~20%
- FMCG, Food, Pharma: ~15%
The robust order book offers multi-year revenue visibility and positions the company for sustained growth. However, execution risks remain — FY24 saw order cancellations worth INR 193.05 crore (24% of revenue), reminding investors that a strong pipeline does not guarantee conversion.
3. M&B Engineering IPO Details
| Particulars | Details |
|---|---|
| IPO Dates | 30 July – 1 August 2025 |
| Price Band | INR 366 – 385 per share |
| Employee Discount | INR 36 per share |
| Fresh Issue | INR 275 crore |
| Offer for Sale | INR 375 crore |
| Total Issue Size | INR 650 crore |
| Lot Size | 38 shares (INR 14,630 at upper band) |
| Face Value | INR 10 per share |
| Retail Quota | 10% |
| Listing | NSE, BSE |
| Promoter Holding (Pre-IPO) | 99.97% |
| Promoter Holding (Post-IPO est.) | ~75% |
4. Financial Performance
M&B Engineering’s topline has seen cyclical fluctuations, but profitability has expanded sharply over the last three years.
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 880.47 | 795.06 | 988.55 |
| Net Profit | 32.89 | 45.63 | 77.05 |
| EBITDA Margin | 7.54% | 10.01% | 12.78% |
| Net Margin | 3.74% | 5.74% | 7.79% |
| ROCE | 19.70% | 19.17% | 24.80% |
| RONW | 18.89% | 19.68% | 25.14% |
| Debt/Equity | 0.13 | 0.45 | 0.33 |
Key Observations:
- Revenue recovery in FY25 post-FY24 slowdown reflects improved order execution.
- Profit growth outpaces revenue growth, driven by margin expansion (EBITDA margin up 524 bps over 2 years).
- Low leverage (0.33X D/E) leaves room for capacity-led growth without stressing the balance sheet.
- Operating cash flow weakened in FY24 to INR 5.65 crore (from INR 28.97 crore in FY23) due to higher receivables and inventory — a working capital challenge to monitor.
The shift towards double-digit operating margins is a positive re-rating trigger. However, high working capital intensity remains a structural drag.
5. M&B Engineering vs Peers
At the upper price band of INR 385, the issue is priced at a P/E of 27.14x (post-issue FY25 annualised EPS of INR 13.48).
| Company | P/E | EPS (INR) | ROCE (%) | Revenue (INR Cr) |
|---|---|---|---|---|
| M&B Engineering | 27.14 | 13.48* | 24.80 | 988.55 |
| Pennar Industries | 25.23 | 8.84 | 11.96 | 3,226.58 |
| Bansal Roofing | 28.39 | 4.20 | 16.71 | 96.63 |
M&B Engineering commands a valuation at par to slightly premium vs peers, justified by its higher ROCE and superior margins. But at this pricing, execution consistency is critical to sustain multiples.
M&B Engineering IPO Review: Strengths & Risks
M&B Engineering Strengths
- Robust Order Book: INR 842.8 crore offers multi-year visibility.
- High-Quality Client Base: 2,000+ customers, including industry leaders; 57% revenue from repeat clients.
- Margin Expansion: EBITDA margin improved from 7.54% (FY23) to 12.78% (FY25).
- Dual Segment Leadership: Strong presence in both PEB and self-supported roofing markets.
M&B Engineering Risks
- Capacity Utilisation: Cheyyar facility at just 23.34% in FY25; underutilisation could dilute return on fresh capex.
- Client Concentration: Top 5 customer accounts for 42.64% of revenue.
- Order Cancellations: FY24 saw cancellations worth INR 193 crore (~24% of revenue).
- Supplier Dependency: 82.69% of raw materials sourced from top 5 vendors; steel price swings can squeeze margins.
Verdict
M&B Engineering offers a compelling growth story backed by a large order book, expanding margins, and strong client relationships. Valuations are not cheap but are aligned with sector leaders, supported by superior returns and operating efficiency.
For investors eyeing medium to long-term industrial growth, this IPO appears promising. However, listing gains may be moderate given that the valuation comfort is already priced in, and execution discipline will be the key differentiator post-listing.
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