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MBL Infrastructures (NSE:MBLINFRA) Financial Strength : 2 (As of Dec. 2024)


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What is MBL Infrastructures Financial Strength?

MBL Infrastructures has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

MBL Infrastructures Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

MBL Infrastructures did not have earnings to cover the interest expense. MBL Infrastructures's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00. As of today, MBL Infrastructures's Altman Z-Score is 0.37.


Competitive Comparison of MBL Infrastructures's Financial Strength

For the Engineering & Construction subindustry, MBL Infrastructures's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MBL Infrastructures's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, MBL Infrastructures's Financial Strength distribution charts can be found below:

* The bar in red indicates where MBL Infrastructures's Financial Strength falls into.



MBL Infrastructures Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

MBL Infrastructures's Interest Expense for the months ended in Dec. 2024 was ₹-113 Mil. Its Operating Income for the months ended in Dec. 2024 was ₹-526 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was ₹0 Mil.

MBL Infrastructures's Interest Coverage for the quarter that ended in Dec. 2024 is

MBL Infrastructures did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

MBL Infrastructures's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 1218
=0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

MBL Infrastructures has a Z-score of 0.37, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.37 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


MBL Infrastructures  (NSE:MBLINFRA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

MBL Infrastructures has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


MBL Infrastructures Financial Strength Related Terms

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MBL Infrastructures Business Description

Traded in Other Exchanges
Address
Baani Corporate One Tower, Suite no. 308, 3rd Floor, Plot No. 5, District Commercial Centre, Jasola, New Delhi, Delhi, IND, 110025
MBL Infrastructures Ltd is engaged in the execution of civil engineering projects. The company provides integrated engineering, procurement, and construction services for civil construction and infrastructure sector projects. The group operates various businesses namely Highways (EPC, BOT, O&M), Buildings, Housing & Urban Infrastructure, Railways/Metro, and Other Infrastructure. The firm operates a fleet of equipment such as hot mix plants, sensor pavers, tandem rollers, soil compactors, stone crushers, loaders and excavators, tippers, motor graders, concrete batching plants, transit mixers, concrete pumps, dozers, and cranes.

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