MBL Infrastructures’ new order in Madhya Pradesh

MBL Infrastructure bagged a new project worth Rs 414.75 crore from the Ministry of Road Transport & Highways. The company will work on rehabilitation and up-gradation from Jabalpur to Hiran river section of NH-12 to four lanes from 10.4 km to 66 km in Madhya Pradesh. The project's total design length is 55.6 km. MBL Infrastructures’ new order falls under NHDP - III (National Highways Development Project) through the engineering, procurement & construction (EPC) basis contract.

MBL Infrastructure is in the business of execution of civil engineering projects. The company has integrated business model for EPC and BOT projects. It is executing several construction, O&M and BOT projects of Roads & Highways,buildings and other civil engineering projects PAN India.

On the financial front, MBL infrastructure's new order constitutes 21.15 per cent of its Rs 1962 crore revenue base in FY15. The company's awarded order comes with an execution period of 24 months from the appointed date.

MBL Infrastructure has total debt of Rs 1287 crore as of Q2FY16. The company's debt to equity stood at 1.69x which is quite lower and healthy as compare to debt laden industry. It also had a cash and cash equivalent of Rs 28.77 crore as of Q2FY16.

The company's total order book stood at Rs 3724 crore as of Q2FY16. It has diversified the order book from government agencies which includes highways,railways and building. MBL Infrastructures’ order book contributes to 71 per cent in the roads and highways segment. Geographically, the company's 20 per cent order book from Madhya Pradesh, 42 per cent from North & West and remaining 37 per cent from East.

MBL Infrastructures’ shareholdings pattern indicates that FII holding expanded by 920 basis points to 11.84 per cent and DII holdings too expanded by 1023 basis points to 28 per cent as of September 2015 quarter during the trailing twelve month time period. Its institutional holdings increment attracted attention towards the stock.

On December 19, Union Minister Nitin Gadkari declared a package of Rs 80000 crore for various infrastructure works in Madhya Pradesh. Out of the total package, different roads measuring 3782 km will be turned into national highways with an investment of Rs 30000 crore. The entire package to the state is primarily for the conversion of state roads into national highways and laying of a railway line. The government's infrastructure boost cheers the sector with proposed orders.

The share price of MBL Infrastructure increased by 7.99 per cent on bourses in early trades and is trading at Rs 221 on intraday basis. However, it must be noted here that the scrip has not shown any downward trends in the past 9 months.