Buy Sadbhav Engineering; target of Rs 388: Edelweiss

Edelweiss is bullish on Sadbhav Engineering has recommended buy rating on the stock with a target price of Rs 388 in its research report dated May 29, 2017.

June 02, 2017 / 17:33 IST

26 Aug, 2025 12:21

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Edelweiss' research report onSadbhav Engineering

Sadbhav Engineering (SEL) posted strong Q4FY17 numbers with revenue at INR10.3bn jumping 20% YoY driven by execution in EPC projects won in FY16 gathering pace. While interest cost rose 21% YoY due to repayment of mobilisation advance to NHAI, lower tax rate led to adjusted PAT catapulting 129% YoY to INR 682mn.

Outlook

Traffic on BOT projects grew 3% YoY post demonetisation impact. SEL's book-to-bill stands at 2.3x. While execution of hybrid annuity (HAM) projects will boost FY18 top line, we believe order inflows remain key catalyst for earnings. Maintain ‘BUY’ with SOTP-based target price of INR 388.

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first published: Jun 2, 2017 05:33 pm

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