M&B Engineering Ltd. IPO: Building Big with Steel and Scale

About the Issue:  

M&B Engineering Ltd is preparing to launch its Initial Public Offering (IPO) for equity shares. See the issue details below.

Objects of the Issue  

The net proceeds from the IPO will be utilized for several strategic initiatives. An amount of Rs 130.58 crore will be directed toward capital expenditure, including the purchase of machinery, building construction, installation of a solar rooftop grid, and procurement of transport vehicles for its manufacturing facilities. Additionally, Rs 5.20 crore is allocated for IT software upgrades, and Rs 58.75 crore for repayment or prepayment of certain term loans. A further Rs 190 crore will be earmarked for general corporate purposes, supporting the company’s overall growth and operational flexibility.

Promoter holding 

The promoters of M&B Engineering Ltd. include Girishbhai Manibhai Patel, Chirag Hasmukhbhai Patel, Malav Girishbhai Patel, Birva Chirag Patel, Vipinbhai Kantilal Patel, Aditya Vipinbhai Patel, and Leenaben Vipinbhai Patel, along with family trusts such as the Chirag H Patel Family Trust, Vipin K Patel Family Trust, MGM5 Family Trust, MGM11 Family Trust, and Aditya V Patel Family Trust. Collectively, the promoter group holds 100 per cent of the company’s equity shares prior to the IPO.

Company Profile  

M & B Engineering Limited – Company Overview

M&B Engineering Limited is one of India’s leading players in the Pre-Engineered Buildings (PEB) industry, offering end-to-end structural steel and roofing solutions for industrial and infrastructure applications. The company specializes in the design, manufacturing, and erection of PEBs, structural steel components, and self-supported steel roofing systems.

The business operates through two core divisions: the Phenix Division, which handles turnkey PEB and complex structural steel projects; and the Proflex Division, which focuses on self-supported steel roofing. M&B provides integrated services covering engineering, manufacturing, and on-site erection.

The company has an annual manufacturing capacity of 103,800 MTPA for PEB structures and 1,800,000 sq. meters for roofing. Its Sanand facility is notably the only PEB plant in India certified by the American Institute of Steel Construction (AISC).

Originally incorporated in 1981 as Manibhai and Brothers (Construction) Pvt. Ltd., it was renamed M&B Engineering Ltd. in 2011. With over 9,500 executed projects, the company has a well-established market presence.

Financials 

Revenue grew from Rs 889 crore in FY23 to Rs 996.89 crore in FY25, marking a 2.2 per cent decline in FY24, followed by a 23.3 per cent increase in FY25. Profit After Tax (PAT) rose from Rs 32.89 crore in FY23 to Rs 77.05 crore in FY25, reflecting a 134.3 per cent increase over two years.

EBITDA increased from Rs 66.43 crore in FY23 to Rs 126.38 crore in FY25, registering a 90.3 per cent growth, indicating strong improvement in operational margins. Net worth surged by 69.8 per cent, from Rs 180.51 crore in FY23 to Rs 306.53 crore in FY25, driven by higher retained earnings.

Reserves and surplus grew by 59.8 per cent, from Rs 160.51 crore to Rs 256.53 crore during the same period. Total borrowings rose by 37.7 per cent from Rs 148.75 crore in FY23 to Rs 204.84 crore in FY24, and decreased by 9.2 per cent to Rs 186.13 crore in FY25, showing improved debt management.

Valuation & Returns 

In comparison to its listed peers, M & B Engineering Limited (post-IPO) appears reasonably valued with a Price-to-Earnings (P/E) ratio of 28.55. This is in line with the broader peer group, where Pennar Industries and Bansal Roofing Products trade at P/E ratios of 28.1 and 30, respectively. Interarch Building Products has a slightly higher P/E of 34.2, while BirlaNU and Everest Industries show negative earnings and hence, no P/E ratio is applicable. M & B's Earnings Per Share (EPS) of Rs 13.48 is stronger than most peers, except Interarch, which reports an unusually high EPS of Rs 68.03, likely influenced by one-off gains or low outstanding shares. Notably, M & B’s Return on Equity (ROE) stands at 28.5 per cent, which is the highest in the peer set, indicating superior profitability and efficient capital utilization. This metric is well above peers like Bansal Roofing (16.71 per cent), Interarch (14.35 per cent), and Pennar Industries (11.96 per cent), while BirlaNU and Everest show negative RONW, reflecting weak or loss-making operations.

From an enterprise valuation standpoint, M & B Engineering’s EV/EBITDA multiple is 17.2, suggesting moderate valuation. This is higher than Pennar Industries (11.5x) but lower than Bansal Roofing (18.5x), Interarch (22.1x), Everest Industries (24.7x), and BirlaNU (28.8x). This middle-ground EV/EBITDA reflects a balanced pricing of the IPO, especially when seen alongside its strong RONW. While M & B’s EV/EBITDA is not the cheapest, it is justified given the company’s better return metrics. The combination of healthy profitability, moderate leverage, and fair market multiples suggests that M & B Engineering offers a promising valuation proposition relative to its peers, making it an attractive candidate for long-term investors seeking growth at a fair price.

Outlook

The outlook for the Pre-Engineered Buildings (PEBs) and Self-Supported Roofing segments remains highly favourable, driven by India's infrastructure push and rising industrial demand. Global GDP is projected to grow by 2.8 per cent in 2025 and 3.0 per cent in 2026, while India is expected to maintain a 6.5 per cent annual growth rate through Fiscal 2026. This growth is largely supported by capital-intensive programs such as the National Infrastructure Pipeline (NIP) and the Production Linked Incentive (PLI) scheme.

The Indian PEB industry expanded at a CAGR of 8.3 per cent from FY2019 to FY2025, reaching Rs 210 billion, and is expected to grow at 9.5–10.5 per cent CAGR to reach Rs 33,000–34,500 crore by FY2030. The self-supported roofing segment is projected to grow at a 5–7 per cent CAGR over the same period. A rising preference for organised players, who held 42–47 per cent revenue share in FY2025, further supports long-term structural demand.

M&B Engineering is well-positioned to leverage this growth. With an installed capacity of 103,800 MTPA and a robust order book of Rs 842.84 crore, the company is geared for expansion. It plans to invest Rs 130.58 crore from IPO proceeds into manufacturing upgrades, while also targeting global markets—particularly the USA, India’s top PEB export destination in FY2025.

Given the industry outlook and the company’s strong fundamentals, we recommend subscribing to the issue from a long-term investment perspective.