)
Shares of MBL Infrastructures has rallied 8% to Rs 626 in otherwise subdued market on the National Stock Exchange (NSE).
The stock hit a record high of Rs 649 in intra-day trade today, surging 55% in past one month after reporting an 83bps year-on-year (yoy) expansion in EBITDA margin at 11.3% for the third quarter ended December 31, 2014 (Q3FY15). The CNX Nifty gained 2.7% during the same period.
Surge in yoy margins is on account of some of the projects nearing completion. Alternatively, yoy margins benefitted from 0.6% decline in cost of materials
“With 3 BOT (build–operate–transfer) projects to commence tolling in FY2016E and 4th to commence tolling in FY2017E, and the management clarifying that it does not intend to add any new BOT projects to the company’s portfolio till FY2017E, we are confident that MBL’s debt equity ratio would peak at 2.7x in FY2017E, which is comforting,” says analyst at Angel Broking in a report dated February 18, 2015.
MBL is expected to benefit from the National Highways Authority of India (NHAI) around 2,000km of EPC (engineering, procurement and construction) award activity in the next 12 months. With economic revival, infra award activity across verticals should catch-up. Having participated in projects worth Rs 10,000 crore, assuming around 25% strike rate, MBL should report Rs 2,500 crore worth of project wins in the next 12 months, added report.
The stock hit a record high of Rs 649 in intra-day trade today, surging 55% in past one month after reporting an 83bps year-on-year (yoy) expansion in EBITDA margin at 11.3% for the third quarter ended December 31, 2014 (Q3FY15). The CNX Nifty gained 2.7% during the same period.
Surge in yoy margins is on account of some of the projects nearing completion. Alternatively, yoy margins benefitted from 0.6% decline in cost of materials
“With 3 BOT (build–operate–transfer) projects to commence tolling in FY2016E and 4th to commence tolling in FY2017E, and the management clarifying that it does not intend to add any new BOT projects to the company’s portfolio till FY2017E, we are confident that MBL’s debt equity ratio would peak at 2.7x in FY2017E, which is comforting,” says analyst at Angel Broking in a report dated February 18, 2015.
MBL is expected to benefit from the National Highways Authority of India (NHAI) around 2,000km of EPC (engineering, procurement and construction) award activity in the next 12 months. With economic revival, infra award activity across verticals should catch-up. Having participated in projects worth Rs 10,000 crore, assuming around 25% strike rate, MBL should report Rs 2,500 crore worth of project wins in the next 12 months, added report.
