Buy Sadbhav Engg; target of Rs 260: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research report on Sadbhav Engineering“Sadbhav Engineering Limited is a paramount Indian infrastructure Company established in the year 1988. It has powerfully anchored on the shores of India’s fast developing economy and it is recognized amongst the premier companies that empower India, to grow eminently in infrastructure sector. Sadbhav currently fosters infrastructure projects ranging from construction of roads, bridges, irrigation supporting infrastructure and mining; thus, enhancing the growth of the country and its people. Even in the present scenario of competition and inflation, and has given the best without compromising in quality and punctuality. Sadbhav has a successful track record of constructing more than 4200 Lane kilometers & 3500 Lane kilometers are under various stages of construction. An exemplary track record for timely completion; have also awarded cash bonus for NH-79 and appreciation for Karnataka project from World Bank."

"The company has decided to complement the Government’s NHDP initiative, of developing over 50,000 km of national highways, in seven phases and will also be a part of the Bharat Nirman Program that envisions providing a network of roads to around 23,000 villages all over India. The company also plans to participate in the SARDPNE, which is set up to establish road connectivity to state capitals, district headquarters and remote areas of the North-Eastern region. SIPL was incorporated as an asset holding company for road and other Infrastructure BOT projects, 4 years ago, and today its portfolio consists of 11 BOT projects out of which 3 are operational, 1 partially operational and remaining under various stages of construction.” “At the current market price of Rs.230.55, the stock P/E ratio is at 28.77 x FY15E and 26.28 x FY16E respectively. Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 8.01 and Rs. 8.77 respectively. On the basis of EV/EBITDA, the stock trades at 14.10 x for FY15E and 13.18 x for FY16E. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 22% over 2013 to 2016E respectively. Price to Book Value of the stock is expected to be at 3.24 x and 2.89 x respectively for FY15E and FY16E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs. 260.00 for Medium to Long term investment,” says Firstcall Research report.

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