Hold Sadbhav Engineering; target of Rs 95: ICICIdirect.com
Brokerage house ICICIdirect.com has recommended hold rating on Sadbhav Engineering (SEL) with a price target of Rs 95, in its July 15, 2013 research report.
ICICIdirect.com's research report on Sadbhav Engineering (SEL)
"Sadbhav Engineering (SEL) has announced it is looking to raise funds through preferential allotment of warrants and rights issue along with detachable warrants. Together, this would enable it to raise ~Rs 200 crore to largely funds its capex requirement (Rs 130 crore). Furthermore, SIPL is mulling various option through securitisation and raising fresh equity to funds its equity commitment of ~Rs 850 crore over the next three years."
"Though current valuations are attractive, we would like to see a ramp up on MBCPN toll collection (contributing a third to our valuation) and improvement in WC and its steps to meet equity requirement for SIPL, going ahead. Consequently, we have assigned a HOLD rating to the stock with an SoTP target price of Rs 95/share. We highlight that we have not incorporated any dilution from recent raising plans in our valuation," says ICICIdirect.com research report.
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