Manglam Infra in Focus After Securing ₹66.57 Lakh Order from Border Roads Organization
Introduction
Manglam Infra in Focus : Infra & Engineering Ltd, a leading player in the infrastructure sector, has garnered attention after securing a significant order worth ₹66.57 lakh from the Border Roads Organization (BRO). The order entails engaging a technical consultant to prepare a feasibility study and a detailed project report for a 25 km greenfield road in Arunachal Pradesh under Project Arunank, adhering to NHSL specifications. Following the announcement, the company’s stock saw an initial surge of up to 7 percent, reflecting positive investor sentiment.
Stock Performance & Market Reaction
Despite the early rally, shares of Manglam Infra & Engineering Ltd closed at ₹29 per share, marking a 4 percent decline from its previous close of ₹30.50 apiece. The company, with a market capitalization of ₹51.56 crore, has witnessed fluctuating price movements in recent times.
Price Movement Overview
| Metric | Value |
|---|---|
| Market Cap | ₹51.56 Cr. |
| Current Price | ₹29.1 |
| 52-Week High/Low | ₹123 / ₹28.1 |
| Stock P/E | 7.55 |
| Book Value | ₹27.0 |
| Dividend Yield | 0.00% |
Key Growth Drivers
The recent order from BRO is expected to contribute to the company’s growth by strengthening its expertise in infrastructure consultancy. The project aligns with India’s push for improved connectivity in the Northeast, particularly in strategic locations like Arunachal Pradesh.
Additionally, Manglam Infra’s robust project pipeline—comprising highway development, bridge construction, and urban development—underscores its strong position in the sector. The company completed 127 projects in FY24, out of which 116 were executed independently and 11 through joint ventures. It currently has 45 ongoing projects.
Financial Performance
Manglam Infra has exhibited resilience despite a recent dip in revenue. The company’s financial performance highlights its capability to sustain growth, even in challenging market conditions.
Revenue & Profit Analysis
| Period | Revenue | Net Profit |
|---|---|---|
| H2FY24 | ₹34 Cr. | ₹228 Cr. |
| H1FY25 | ₹17 Cr. | ₹104 Cr. |
| Change (%) | -50% | -54% |
Although revenue and profit declined in the recent half-yearly period, the company continues to demonstrate long-term stability through diversified revenue streams.
Business Model & Revenue Streams
Manglam Infra’s core business revolves around infrastructure supervision, quality control, and project consultancy. Below is a breakdown of its revenue sources:
| Segment | Contribution (%) |
|---|---|
| Highways/Roads DPR | 5% |
| Buildings/Urban Development DPR | 1% |
| Supervision & QC (Highways/Roads) | 52% |
| Supervision & QC (Bridges) | 22% |
| Supervision & QC (Buildings/Urban Development) | 2% |
| Operations & Maintenance | 18% |
The company’s significant focus on quality control and supervision services enhances its reputation in the industry.
Key Financial Ratios
The company’s financial ratios indicate a strong return profile and efficient capital allocation.
| Ratio | FY22-23 | FY23-24 |
|---|---|---|
| Return on Equity (ROE) | 54.01% | 39.55% |
| Return on Capital Employed (ROCE) | 73.25% | 49.62% |
| Net Profit Margin (NPM) | – | 16.80% |
Manglam Infra’s return on equity and return on capital employed have declined slightly, but they remain impressive, reflecting efficient capital utilization.
Other Key Metrics
| Metric | Value |
|---|---|
| Debt to Equity | 0.07 |
| Promoter Holding | 72% |
| Price to Earnings Ratio | 7.55 |
| Industry PE | 26.2 |
| RSI (Relative Strength Index) | 29.6 |
| Graham Number | ₹57.0 |
| Intrinsic Value | – |
| 200 DMA | ₹63.6 |
| Free Cash Flow (3Yrs) | – |
| Free Cash Flow | ₹-1.76 Cr. |
| Debt | ₹3.11 Cr. |
| EPS (Earnings Per Share) | ₹5.34 |
A low debt-to-equity ratio of 0.07 indicates strong financial health, while an RSI of 29.6 suggests that the stock is nearing oversold territory, potentially making it an attractive buy.
Future Outlook
With a strong project pipeline, government-backed infrastructure initiatives, and expertise in quality control, Manglam Infra is well-positioned for future growth. The order from BRO further strengthens its credibility in the infrastructure consultancy domain, potentially opening doors for more high-value contracts.
While short-term revenue fluctuations may persist, the company’s steady project execution, financial stability, and industry demand position it for long-term success. Investors should closely monitor its upcoming project wins, revenue trends, and stock performance for further insights.
Conclusion
Manglam Infra & Engineering Ltd remains a key player in India’s infrastructure development sector. The recent order from the Border Roads Organization adds to its credentials and could be a stepping stone for further growth. Despite recent revenue declines, its strong project execution, stable financial ratios, and government contracts make it a promising stock in the infrastructure space.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.