Buy Sadbhav Engineering; target of Rs 75: Sharekhan

Sharekhan's research repor on Sadbhav Engineering

However, it improved from July onwards and Sadbhav expects normalcy from October onwards. Management broadly maintained FY2021 and FY2022 revenue guidance. Its order book remains strong at over 4x FY2020 standalone revenue with receipt of new orders worth Rs. 1572 crores. The management expects release of promoters’ pledged shares within three months which would remove a key hangover on the stock.

Outlook

We maintain our Buy rating on Sadbhav Engineering Limited (SEL) with an unchanged PT of Rs. 75, factoring improving fundamentals and undemanding valuation. Project execution was affected severely by COVID-19.