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Last Updated : Aug 16, 2019 02:44 PM IST | Source: Moneycontrol.com

Sadbhav Engineering falls 4% after Kotak cuts target price amid weak Q1

Kotak cut target price sharply to Rs 190 from Rs 270 per share after company reported an expectedly weak Q1 numbers.

 
 
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Shares of Sadbhav Engineering fell 4.5 percent intraday on August 16 as Kotak Institutional Equities slashed target price by 30 percent after subdued earnings in Q1.

The stock lost more than 50 percent of its value in the last one year. It was quoting at Rs 127.50, down Rs 5.45, or 4.10 percent on the BSE at 1415 hours IST.

Kotak has upgraded the stock to buy but slashed target price sharply to Rs 190 from Rs 270 per share after the company reported expectedly weak Q1 numbers.

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The company reported the consolidated loss at Rs 8.06 crore in June quarter 2019 against profit at Rs 18.54 crore in the same period last year. Revenue from operations also fell to Rs 1,238.2 crore against Rs 1,495 crore in the corresponding period of the previous year.

The brokerage sees limited risks to the asset sale transaction and feels pledged shares should coming down meaningfully by October.

Nitin Patel, Executive Director at Sadbhav Engineering told CNBC-TV18 that intent is to monetise HAM project as & when the asset matures and the target is to have a capital-light balance sheet.

"Our focus will continue to be on execution of EPC projects. Money from asset monetisation will come in by Q3FY19," Patel said, adding the company is not expecting any more write-off from order book.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Aug 16, 2019 02:44 pm
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