HDFC Institutional Research is among the brokers taking a second look at Sadbhav Engineering, giving it an aggressive price target of Rs. 400+. The company is in discussions with multiple parties to sell 12 of its subsidiary SIPL's road projects, which would raise funds for the company to shift to a more asset-light EPC model and fund construction of ongoing commitments. Cube Highways is rumored to be the frontrunner on the purchase. Share price of the company is up today.
Sadbhav has seen some jitters this financial year - order inflows have remained muted during FY19 till date (inflows stand at approximately Rs 3,100 crore so far) led by a slowdown in NHAI’s tenders. Rs 28000 crore worth of NHAI bids is set to be tendered before the election code of conduct, and Sadbhav says it is expecting Rs. 2,000 crore worth of fresh orders.