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): ―
• Beta (1Y): 0.49
• Revenue Growth: -38.84%
• EPS Growth: -252.03%
• Country: IN
• Employees: 253
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -69.08
• Shares Outstanding: 8,607,588
• 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: 41 Neutral
• Price Target: ₹3.00 ▼(-7.41% Downside)

McNally Bharat Engineering Co. Ltd.'s score is primarily impacted by poor financial performance, characterized by declining revenues and negative profitability. The technical indicators show weak momentum, and the valuation is unattractive due to negative earnings and lack of dividends. The absence of earnings call data and notable corporate events means these factors are not affecting the score.

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

Company Description

McNally Bharat Engineering Co. Ltd. (MBECL) is a leading engineering and construction company based in India, specializing in providing comprehensive solutions for various sectors, including power, steel, mining, and infrastructure. Established in 1961, MBECL offers a diverse range of services, including project management, engineering, procurement, construction, and maintenance, along with manufacturing of equipment for heavy industries. The company is known for its expertise in the execution of large-scale projects and commitment to quality and safety.

How the Company Makes Money

MBECL generates revenue primarily through its engineering and construction services, which include project execution for various sectors such as power generation, steel production, and mining operations. The company earns money by securing contracts for large infrastructure projects, often through competitive bidding processes. Key revenue streams include contract revenues from construction projects, equipment sales, and maintenance services. Additionally, MBECL has established strategic partnerships with various national and international firms, enhancing its capabilities and expanding its market reach, thereby contributing to its earnings. The company's focus on diversifying its portfolio and entering new markets also plays a significant role in 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 3.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.74 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	70 Outperform	₹30.79B	11.56	―	―	15.42%	-13.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
A2ZINFRA	49 Neutral	₹2.97B	30.65	―	―	-8.72%	―
HCC	48 Neutral	₹50.42B	29.97	―	―	-31.50%	-74.38%
MBECL	41 Neutral	₹557.77M	―	―	―	-38.84%	-252.03%

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.

McNally Bharat Engineering Faces Fines for Board Composition Non-Compliance

McNally Bharat Engineering Co. Ltd. has disclosed that it received fines from both the BSE and NSE due to non-compliance with SEBI’s Listing Obligations and Disclosure Requirements. Specifically, the company failed to meet board composition requirements by not appointing a woman director for the quarter ending June 30, 2025. This non-compliance has resulted in a financial impact on the company, highlighting the importance of adhering to regulatory standards to avoid penalties and maintain operational integrity.

McNally Bharat Engineering Announces Q1 Financials and Strategic Changes

McNally Bharat Engineering Co. Ltd. announced its unaudited financial results for the quarter ended June 30, 2025, and disclosed several strategic decisions. The company plans to hold its 62nd Annual General Meeting virtually, appoint new secretarial auditors, and relocate its registered office within West Bengal. Additionally, the company has decided to discontinue the consolidation of financial results for its overseas subsidiaries, following the deregistration of its Singapore subsidiary and plans to divest its Zambian subsidiary due to lack of operations.