BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Edelweiss maintains buy on Sadbhav Engineering
Engineering's (SEL) top line grew 17% YoY in Q1FY18 driven by
commencement of work on hybrid annuity (HAM) projects and pick up in
execution on EPC projects. While interest cost catapulted 87% YoY, MAT
credit led to PAT jumping 14% YoY to INR555mn. Traffic on BOT projects
grew around 2% YoY. While we envisage execution of HAM projects to boost
FY18 top line, order inflows remain critical to improve revenue
visibility (book-to-bill at 2.4x) and will determine stock performance.
Maintain 'BUY' with SOTP-based target price of INR388.