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SMR
08-21-2015, 06:40 AM
MBL Infrastructures Limited is an India-based company engaged in the execution of Civil Engineering Projects. The Company provides integrated Engineering, Procurement and Construction services for Civil Construction and Infrastructure sector projects. The Company has successfully completed the execution of the BOT project of 114 Kilometers long Seoni - Balaghat - Gondia State Highway. The Company’s business segments are, namely, Highway Construction; Road Operations and Maintenance; BOT Projects; Industrial Infrastructure; Housing Infrastructure; Railway Infrastructure; and Other Infrastructure Projects. The Company had entered into joint ventures with the companies engaged in the area of infrastructure construction which include: Supreme Infrastructure India Limited and SREI Infrastructure Finance Limited.

Official Website: www.mblinfra.com

SMR
08-21-2015, 06:41 AM
MBL Infrastructures (MBL) reported a good set of numbers for 1QFY2016, which are ahead of our expectations. The company reported a 19.5% yoy increase in its consolidated revenues to `613cr, which are ahead of our estimate of `590cr. The EBITDA margin has come in almost flat on a yoy basis, at 11.0%, which is again slightly ahead of our expectation of 10.8%. A lower tax rate, and a restricted 10.8% yoy increase in depreciation expenses, helped the company report better PAT margins, ie of 4.9%, for 1QFY2016 (ahead of our estimate of 4.5%). The Reported PAT margin of the company expanded from 4.6% in 1QFY2015 to 4.9% in 1QFY2016. MBLís unexecuted order book as of 1QFY2016 stands at ~Rs2,724cr, which gives revenue visibility for over the next 4-5 quarters. With 3 BOT projects expected to commence tolling in FY2017 and with the Management clarifying that it does not intend to add any new BOT projects to the companyís portfolio till FY2017, we are confident that MBLís D/E ratio would peak out in FY2017 at 2.3x. Outlook and valuation: We continue to maintain our positive view towards MBL considering its historical execution experience, huge emerging market opportunity in the Roads & Highways vertical and 3 BOT projects expected to commence operations in the next 12 months. The likelihood of 3 BOT projects commencing operations in FY2017 comforts us and leads us to estimate that the companyís consolidated Balance Sheet would peak in FY2017. Using the SoTP based valuation methodology, we arrive at a FY2017E based price target of Rs360. Given the upside potential, we maintain our Buy rating on the stock.

Source: http://www.angelbroking.com/