Prabhudas Lilladher's report on Sadbhav Engineering"Sadbhav Engineering (SEL) reported sales at Rs8.2bn (PLe: Rs7.8bn), up 21% YoY. Sales for Roads/Irrigation were up 5%/195% respectively while sales for mining segment was down 12% YoY. EBITDA was up 25% YoY to Rs894m; EBITDA margins improved 40ps YoY to 10.8% (PLe: 10.3%), lower commodity prices helped improve margins. Adj. PAT was up 46% YoY to Rs395m (PLe: Rs340m). SEL expect margin to improve over the course of the year due to benefits of weak commodity price and high contribution on in-house BOT projects."Outlook and valuation: "The stock is trading at core PE of 13x FY17E earnings. We believe healthy order book (Rs84bn, 2.8x FY15 sales) provides strong visibility and an improving outlook across segments which augur well for future growth. Limited commitment on the current BOT portfolio andwell-funded balance sheet makes it well-placed to benefit from improved ordering in the Road sector. Buy the stock with a target price of Rs 380", says Prabhudas Lilladher research report.For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
