Buy Sadbhav Engineering; target of Rs 285: Sharekhan

Sharekhan's research report on Sadbhav Engineering

Sadbhav Engineering Limited (SEL) receives CARE rating downgrade for its Rohtak-Hisar project due to delay in debt servicing. Diversion of traffic due to presence of alternate routes has led to lower tolling and losses in the project. Management is discussing the issue with NHAI and expects favourable resolution as the issue of alternate route is covered in the concession agreement.

Outlook

We maintain our Buy rating on SEL with an unchanged price target of Rs. 285.