McNally Bharat Engineering Co. Ltd. (MBECL) AI Stock Analysis

• Market Cap: ₹557.77M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): <0.1
• Beta (1Y): >-0.01
• Revenue Growth: -36.07%
• EPS Growth: N/A
• Country: IN
• Employees: 253
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1143.05
• Shares Outstanding: 33,333,336
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.24
• Price to Sales (P/S): 13.19
• P/FCF Ratio: -83.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹3.00 ▼(-7.41% Downside)

The overall stock score of 42 reflects the company's significant financial challenges, as indicated by the lowest possible financial performance score. Technical analysis provides some potential for a rebound, but the negative MACD and high stochastic suggest caution. The valuation score is moderate due to the low P/E ratio, but this is overshadowed by the company's financial instability.

Positive Factors

Leadership Strengthening

The appointment of a new independent director can enhance governance and leadership, potentially improving strategic decisions and stakeholder trust.

Diversified Revenue Streams

A diversified revenue model across multiple sectors provides resilience against industry-specific downturns and supports long-term growth.

Strategic Partnerships

Strategic partnerships enhance project portfolio and contract flow, supporting sustained revenue and market position.

Negative Factors

Financial Instability

Financial instability with declining revenues and negative margins indicates urgent need for restructuring to ensure long-term viability.

High Leverage

High leverage and negative equity highlight financial risk, limiting flexibility and increasing vulnerability to economic fluctuations.

Liquidity Challenges

Severe liquidity issues with negative cash flows can constrain operations and investment, impacting long-term growth and stability.

McNally Bharat Engineering Co. Ltd. Business Overview & Revenue Model

Company Description

McNally Bharat Engineering Company Limited primarily engages in engineering, procurement, and construction businesses in India. It operates through two segments, Turnkey Engineering and Other Engineering Services. The company offers its turnkey solutions in the areas of power, steel, coal and mining, ports, aluminum, material handling, mineral processing, cement, water, pyro processing, pneumatic handling of powdered materials, coal washing, port cranes, cement, civic, industrial water supply, and oil and gas sectors, as well as for infrastructure sectors, such as buildings and townships, high rises, roads, metro, rail etc. It also manufactures a range of products, including crushers and screeners, mobile crushing and screening plants, skid mounted coal sizers, mills, pressure vessels, material handling equipment, and steel plant equipment, as well as process equipment, such as flotation cells, thickeners, slurry pumps, etc. The company was formerly known as McNally-Bird Engineering Company Limited and changed its name to McNally Bharat Engineering Company Limited in 1972. McNally Bharat Engineering Company Limited was incorporated in 1961 and is headquartered in Kolkata, India.

How the Company Makes Money

MBECL generates revenue through a diversified model that includes contract awards for engineering, procurement, and construction (EPC) projects across multiple sectors. The company has key revenue streams from infrastructure development, particularly in power generation, mining operations, and material handling systems. Additionally, MBECL earns income from maintenance contracts and service agreements related to the projects it undertakes. Strategic partnerships with government agencies and private corporations enhance their project portfolio and provide a steady flow of contracts. The company's ability to execute large projects efficiently and its reputation for quality work contribute significantly to its revenue generation.

McNally Bharat Engineering Co. Ltd. Financial Statement Overview

Summary

McNally Bharat Engineering Co. Ltd. is experiencing severe financial distress. Revenue declines, negative profitability margins, and high leverage indicate significant financial challenges. The balance sheet displays negative equity, and cash flows are consistently negative, pointing to sustainability concerns.

Income Statement

The company has experienced a significant decline in revenue over the years, with a notable decrease in total revenue from previous periods. The gross profit margin has decreased, indicating rising costs relative to revenue. Both EBIT and EBITDA margins are negative, highlighting ongoing operational challenges. The net profit margin is also negative, with substantial net losses reported annually.

Balance Sheet

The balance sheet reveals financial instability, characterized by a negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, and the company's high total debt suggests significant leverage. These factors point to potential financial distress and risk.

Cash Flow

Operating cash flow has been negative in most recent periods, indicating challenges in generating cash from core operations. Free cash flow is consistently negative, highlighting issues in covering capital expenditures. The ratio of operating cash flow to net income is not favorable, suggesting inefficiencies in converting earnings into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.05B	1.05B	1.68B	3.81B	4.24B	5.02B
Gross Profit	238.62M	238.62M	150.23M	689.44M	846.33M	1.52B
EBITDA	-8.65B	-8.65B	-461.92M	-2.53B	-571.24M	189.12M
Net Income	-17.16B	-17.16B	-8.83B	-22.71B	-1.13B	-447.15M
Balance Sheet
Total Assets	11.70B	11.70B	19.99B	20.98B	26.99B	27.98B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.20B	174.37M	302.35M	453.24M	421.91M
Total Debt	30.95B	30.95B	31.07B	31.06B	24.05B	23.85B
Total Liabilities	70.62B	70.62B	62.07B	54.22B	28.60B	28.25B
Stockholders Equity	-58.91B	-58.91B	-42.07B	-33.25B	-1.73B	-472.45M
Cash Flow
Free Cash Flow	0.00	-165.43M	-131.14M	99.96M	-78.48M	622.60M
Operating Cash Flow	0.00	-165.41M	-130.01M	99.96M	-71.46M	628.53M
Investing Cash Flow	0.00	-149.76M	-8.53M	-107.02M	390.90M	17.20M
Financing Cash Flow	0.00	163.33M	11.62M	55.83M	-334.31M	-483.05M

McNally Bharat Engineering Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MBECL, the sentiment is Negative. The current price of 3.24 is above the 20-day moving average (MA) of 3.24, below the 50-day MA of 3.24, and below the 200-day MA of 3.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 37.04 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MBECL.

McNally Bharat Engineering Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATELENG	65 Neutral	₹25.63B	8.85	―	―	12.37%	-22.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HCC	45 Neutral	₹47.70B	27.57	―	―	-31.50%	-74.38%
MBECL	42 Neutral	₹557.77M	<0.01	―	―	-36.07%	―
A2ZINFRA	40 Underperform	₹2.59B	99.52	―	―	1.97%	-6.97%

McNally Bharat Engineering Co. Ltd. Corporate Events

McNally Bharat Engineering Appoints New Independent Director

McNally Bharat Engineering Co. Ltd. has announced the appointment of Mr. Mehar Chand Thakur as a Non-Executive Independent Director, effective from October 22, 2025. This strategic appointment, approved by the company’s board and pending shareholder approval, is part of the company’s ongoing efforts to strengthen its governance and leadership structure, potentially impacting its market positioning and stakeholder confidence.