InvestorQ : what is your view on MBL INFRA as a promoter increase their stake and decrease the pledged share % and their EPS is now positive as compare to previous negative EPS?
Ankit made post

what is your view on MBL INFRA as a promoter increase their stake and decrease the pledged share % and their EPS is now positive as compare to previous negative EPS?

Answer
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1 year ago


First and foremost, promoter hiking the stake in a company is not a signal to buy the stock. Quite often promoters buy the stock to increase their stake and also to give a signal to the market. MBL Infra is operating in the area of roads and construction and that is a segment that is doing quite well due to a surfeit of orders from the government as part of its infrastructure thrust. While the stock is current profitable, the earnings have been too erratic in the past. There are larger infrastructure with better debt management and sustainable profits in the industry. We suggest you look at stocks like Sadbhav or IRB Infra to play the infra story.