Manglam Infra and Engineering Limited

Manglam Infra & Engineering Limited is an infrastructure consultancy company, and the core business is providing project management consultancy services which includes detailed project reports (DPRs), Supervision and quality control (SQC), and operation & maintenance (O & M) for Highways/Roads, Bridges, Tunnels, Buildings/Urban development. They undertake various project independently as well as through Joint ventures and MoUs with other players in this industry. Company caters to various state governments of Madhya Pradesh, Jammu & Kashmir, Bihar, Arunachal Pradesh, Jharkhand, Himachal Pradesh, Uttar Pradesh, Manipur, Nagaland, Maharashtra, Assam, Rajasthan, Uttarakhand and Haryana and central government and have completed total 127 projects out of which 116 projects are undertaken on an independent basis and 11 projects are undertaken through Joint ventures and MoUs. Currently, they have 45 on-going projects out of which 22 projects are being undertaken on an independent basis and 23 projects are being undertaken through Joint ventures and MoUs. They are a team of more than 300 qualified professionals, with experience ranging between 7 to 15+ years. In alignment with the business requirements, they also occasionally engage third-party service providers for specific contracts on need basis. The Order Book, comprising anticipated revenues from the unexecuted portions of existing contracts (including signed contracts for which all pre-conditions to entry into force have been met and letters of acceptance issued by the client prior to execution of the final contract) as of May 31, 2024, was Rs 7,890.87 Lakhs. As per financial performance, Manglam Infra and Engineering Limited has posted total income / net profits of Rs 26.78 Cr / Rs 3.32 Cr (FY22), Rs 34.78 Cr / Rs 5.54 Cr (FY23) and Rs 40.50 Cr / Rs 6.76 Cr (FY24). So as per previous financials data, company has shown good results, but trade receivables are around 41% of FY24 total income. Company has posted an average EPS of Rs 3.84 and average RoNW of 49.44% for last three fiscals. Issue is priced at a P/BV of 4.15 as per NAV of 13.5 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 29.60, 17.78 and 14.57 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Unistone Capital Private Limited is associated with this SME IPO and handled 16 IPOs in last 3 years. From last 10 SME IPOs, all opened Above issue price or at par on the day of listing. As of now from last 10 SME IPOs, two are trading below issue price and remaining above issue price. ( As on 19.07.24 ) As per financials, Manglam Infra and Engineering Limited has shown good results, RoNW is 49.44% and P/E is respectively 29.60, 17.78 and 14.57 as per FY22, FY23 and FY24 earnings. So, issue looks fairly priced, but trade receivables are around 41% of FY24 total income. Company is engaged in the business of infrastructure consultancy providing project management consultancy services, which is highly fragmented and competitive business segment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Ajay Verma
• 2 Yogendra Kumar Singh
• 3 Nisha Singh
• 4 Seema Verma