Management

• Hemant Ishwarlal Modi (Non-Executive Chairman and Independent Director)
• Chirag Hasmukhbhai Patel (Joint Managing Director)
• Malav Girishbhai Patel (Joint Managing Director)
• Vipinbhai Kantilal Patel (Non-Executive Director)
• Girishbhai Manibhai Patel (Whole-time Director)
• Aditya Vipinbhai Patel (Whole-time Director)
• Birva Chirag Patel (Whole-time Director)
• Sanjay Shaileshbhai Majmudar (Non-Executive and Non-Independent Director)
• Birju Maheshbhai Patel (Independent Director)
• Udayan Dileep Choksi (Independent Director)
• Subir Kumar Das (Independent Director)
• Sonal Vimal Ambani (Independent Director)
• Keyur Bachubhai Shah (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 650 cr which comprises of fresh issue of Rs. 275 cr and offer for sale component (OFS) of Rs 375 cr. The company intends to utilize a portion of the net proceeds towards funding the capital expenditure requirements for the purchase of equipment and machinery, building works, solar rooftop grid and transport vehicles at its manufacturing facilities (Rs 130.58 cr), re-payment or pre-payment of term loans, in full or in part, of certain borrowings availed by the company (Rs 58.75 cr), investment in IT software upgradation by our Company (Rs 5.20 cr) and rest for general corporate purpose.

Competitive Strengths

Leadership in the Domestic PEB Industry The company is one of India’s leading Pre-Engineered Buildings (PEBs) players with installed capacity greater than 100,000 MTPA. It has installed capacity of 103,800 MTPA for PEB structures and 1,800,000 square metres per annum for self-supported roofing solutions as on March 31, 2025. The company has achieved leadership position by leveraging a comprehensive suite of services, integrated manufacturing facilities, ability to deliver solutions, strong focus on customer service and a well-established track record of over 9,500 projects undertaken for execution. The leadership position provides competitive advantages such as reduced costs due to economies of scale and better pricing power.

Expanding Global Presence and International Revenue The company’s business footprint spans across geographies and it exports PEBs and complex structural steel components to 22 countries, including the United States of America, Brazil, South Africa, Qatar, Sri Lanka, Morocco, Nigeria, Kenya and Seychelles. Since Fiscal 2010, it has served customers in 22 countries. Revenue from operations for sales outside India was Rs 645.98 million, Rs 191.99 million and Rs 602.57 million in Fiscal 2025, Fiscal 2024 and Fiscal 2023, representing 6.53%, 2.41% and 6.84% respectively of consolidated revenue. A wholly owned subsidiary in the US with a marketing and sales office in Texas leverages opportunities in North and South American markets.

Comprehensive Solutions and Expertise in Diverse Projects The company provides a wide range of specialised products and services and is an integrated manufacturing partner offering design-led-manufacturing solutions. It provides designs, engineering solutions, manufacturing and testing for reliability, safety and performance. It specialises in innovative design, manufacturing and installation of pre-engineered metal buildings, structural steel components and self-supported steel roofing. Combining strengths of the Phenix and Proflex divisions enables flexibility to cater to small and large projects. Experience in over 9,500 projects spanning terrains, regions, applications, specifications, delivery timelines and size demonstrates credentials to customers and potential customers across industries.

Phenix and Proflex Divisions Driving Product Leadership Through the Phenix Division, the company provides integrated manufacturing operations, including estimation, designing, engineering, and manufacturing of PEBs. Products include primary structural members, secondary structural members, claddings, and accessories. PEBs have advantages such as better quality control, sustainability, faster construction timelines and cost optimisation. The company manufactures structural steel components for airports, bridges, buildings, oil and gas, petrochemicals and power projects using various steel grades. The Proflex Division provides self-supported steel roofing solutions using proprietary software for determining optimal steel thickness and manufactures roofing panels on-site. Additional value-added services include wall cladding, ventilators, skylights and HVLS fans.

Strong Customer Relationships and Advanced Infrastructure The company has long-term relationships with customers across industries and an order book of Rs 8,428.38 million as of June 30, 2025. It operates two strategically located manufacturing facilities for PEBs at Sanand, Gujarat and Cheyyar, Tamil Nadu and 14 mobile manufacturing units for roofing systems. Facilities are equipped with high precision CNC machinery, welding machines, painting systems and certified by ISO, RDSO, FM Global, NABL and AISC. In-house design and engineering offices at Hyderabad, Chennai and Ahmedabad use advanced software for conceptualising and manufacturing complex structures. Solar power facilities at Sanand and Cheyyar reduce energy costs. Experienced promoters and professional management team drive operations and growth.

Peer Comparison

Key Risks & Concerns

• The business is dependent on manufacturing facilities and is exposed to certain risks in the manufacturing process due to the use of heavy machinery. In the past, there have been four instances of death during operations at project sites. Any slowdown or shutdown in manufacturing operations, including strikes or work stoppages, could harm business operations, cash flows, financial condition, and results of operations.
• Most of the revenue is derived from the design, manufacture, and installation of pre-engineered buildings. Any loss of demand or decline in demand for pre-engineered buildings could negatively affect business operations, revenue, and overall financial condition.
• The company is subject to high-quality standards and strict performance requirements from customers. Any failure to meet these standards or performance obligations could result in cancellation of current or future orders, recalls, financial penalties, invocation of performance guarantees, warranty or indemnity claims, and may adversely impact reputation, operations, financial condition, and cash flows.

Outlook and Valuation

The company has delivered a stable financial performance over the past three years, with revenue growing at a CAGR of 6% from 880 Cr in FY23 to 989 Cr in FY25 and PAT growing at a CAGR of 53% from 33 Cr in FY23 to 77 Cr in FY25. The company also maintains the highest EBITDA and PAT margins among peers.

M&B Engineering Ltd. benefits from a pan-India presence and a strong customer base across 22 countries, offering geographical leverage in both domestic and international operations. Integrated manufacturing facilities enable efficient delivery, while long-term client relationships in industrial regions like Gujarat and Maharashtra provide logistical and execution advantages. The company is positioned to benefit from India’s growing PEB and industrial roofing demand. Strong relationships with marquee clients like Adani, Tata, Intas, and Arvind, along with turnkey execution capabilities, support market penetration and repeat business opportunities. The company is valued at a P/E multiple of 25x for FY25, based on the upper price band. We recommend a SUBSCRIBE rating to the issue.