Sadbhav Engineering Ltd. share price target and research reports

Name: Latest research reports of Sadbhav Engineering Ltd. authored by Dolat Capital and published by - Trendlyne research reports.
Item: Sadbhav Engineering Ltd.
Rating: 5
Author: Dolat Capital

Latest analyst research reports with target prices and PDF download for SADBHAV, BSE:532710 Sadbhav Engineering Ltd.

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Sadbhav Engineering Ltd.

23 Nov 2020

8.66

0.46%

Sadbhav Engineering

Sadbhav Engineering Ltd.

ICICI Securities Limited

Sadbhav Engineering (SEL) continued to report disappointing numbers in H1FY21 with revenue falling 54.2% YoY to | 641.9 crore, largely marred by disruptions caused by Covid-19 pandemic. Operating margin fell 162 bps YoY to 10.8% for H1. At net level, the company reported loss of | 21.3 crore during H1FY21 on account of lower operational revenue and higher costs. SEL's standalone net debt (including loans) at the end of September 2020 was at | 1,095 crore. However, the company expects the potential realisation of arbitration awards, SPV debtors, GST refunds, and proceeds from transfer...

Sadbhav Engineering has lost -28.49% in the last 1 Year

Sadbhav Engineering Ltd.

18 Nov 2020

8.66

0.46%

Sadbhav Engg

Buy: Sadbhav Engineering Ltd.

Dolat Capital

With all approvals in place, stake sale in Ahmedabad Ring Road (Rs3.4bn) expected to conclude and proceeds are likely to be received by Dec'20. Sadbhav Engineering posted a decent set of numbers with revenues in line with our estimates while margins remain healthy at 12.1%, beating our and...

Promoters unpledged 22.98% of shares in last quarter. Total pledge stands at 19.69% of promoter holdings

Sadbhav Engineering Ltd.

03 Sep 2020

8.66

0.46%

Sadbhav Engg

Buy: Sadbhav Engineering Ltd.

Target

Sharekhan

Sadbhav Engineering Limited (SEL) yet again disappointed on execution front during Q1FY2021 with standalone revenues declining by 73% y-o-y to Rs. 230 crore. However, OPM beat expectations (although falling 402 bps y-o-y to 8.5%) as gross margins improved. Lower revenue affected by COVID-19 led challenges and a dip in OPM led to a standalone net loss of Rs. 26.6 crore (higher than our expectation of a net loss of Rs. 22 crore). However, post Q1FY2021, SEL has seen labour availability and execution run-rate improving to 70-80% and 60-70%, respectively, from July 2020. It expects to achieve labour availability of 90100% and normalized execution run-rate from October 2020 onwards. Hence, the...

Sadbhav Engineering has lost -28.49% in the last 1 Year

Sadbhav Engineering Ltd.

03 Sep 2020

8.66

0.46%

Q1FY21 Result Update - Muted quarter as pandemic disrupts operations - BUY

Buy: Sadbhav Engineering Ltd.

Prabhudas Lilladhar

Management expects to receive Rs3.4bn (Rs2.7bn for Ahmedabad Ring Road and Rs0.7bn balance from earlier 8 BOT assets) by 3QFY21E from Canadian pension fund for its assets stake sale. Further, the company is gradually ramping up execution across project sites with labour availability reaching ~80% pre-covid levels. With full labour force expected to be back post monsoon and commencement of three large EPC projects worth Rs36bn; company targets construction run-rate of Rs90-100mn/day from Oct'20. SADE is one of the most reputed and credible EPC companies in...

Sadbhav Engineering has lost -28.49% in the last 1 Year

Sadbhav Engineering Ltd.

10 Jul 2020

8.66

0.46%

Q4FY20 Result Update - Execution to pick up from 2HFY21E - BUY

Buy: Sadbhav Engineering Ltd.

Target

Prabhudas Lilladhar

booked a profit of ~Rs170mn on its investment. Sadbhav Engineering (SADE) reported a mixed set of results with better operating performance, however higher effective tax rate dented profitability. sale of Ahmedabad Ring Road BOT project at a P/BV of ~2.5x (valuation as per agreement) is to be completed in FY21E. After a month's halt in construction activities due to nationwide lockdown, operations have now resumed in all project sites with labour force currently at 50-60% pre-covid levels. Company targets construction run-rate of Rs100mn/day with labour...

Sadbhav Engineering has lost -28.49% in the last 1 Year

Sadbhav Engineering Ltd.

27 Apr 2020

8.66

0.46%

Sadbhav Engineering (Update): Execution back in focus. Maintain BUY

Buy: Sadbhav Engineering Ltd.

Target

HDFC Securities

Update on HAM funding and arbitration proceeds: Gross debt outstanding for the 10 HAM assets stands at Rs 20.18bn, with balance requirement being Rs 24bn. On the equity front Rs 2.2/1.67bn is expected to be infused over FY21/22E. Arbitration proceeds of Rs 4.2bn have been awarded (Rs 2.2bn with SEL, Rs 2bn with SIPL). On the Rohtak-Panipat project, SEL has been advised by NHAI to move the case to conciliation committee rather than arbitration. In company's view it is a clear case of an event of default (alternate traffic route is the issue here) as per the CA, and is confident of recovering its entire equity and debt. Sadbhav Engineering Ltd (SEL) has announced a management rejig with Mr Vasistha Patel (VP) being appointed as CEO and Mr Shashin Patel stepping down as Chairman and MD to Vice Chairman in non executive capacity. We perceive this as a positive step with VP getting iron hand on execution and promoter SP dissociating himself from day to day run. SEL BS has deleveraged post the SIPL deal and now VP has immediate challenge of ramping up execution against the COVID-19 headwinds. We maintain BUY with SOTP of Rs 56/sh

Promoters unpledged 22.98% of shares in last quarter. Total pledge stands at 19.69% of promoter holdings

Sadbhav Engineering Ltd.

17 Feb 2020

8.66

0.46%

Sadbhav Engineering (3QFY20): Streamlining on track. Maintain BUY

Buy: Sadbhav Engineering Ltd.

Target

HDFC Securities

SEL 3QFY20 performance was a disappointment as funding constraints limited execution of projects. With conclusion of InfInfravit deal funding issues will get resolved. Group standalone debt reduction by 50% will augur well for reinstating financial markets confidence in the group. Whilst it will take time for SEL to revert to historical levels of quarterly execution, we believe 3QFY21E onwards things should normalize. We maintain BUY. Key risks (1) Delay in new order inflows; and (2) Further delay in execution ramp-up. We maintain BUY on SEL with a reduced TP of Rs 175sh (vs. Rs 241/sh earlier). We value SELs EPC business at 15x FY21E EPS and assign a 20% hold co discount to SIPL stakes market cap. TP reduction is owing to FY20/21E EPS cut by 43/24%.

Promoters unpledged 22.98% of shares in last quarter. Total pledge stands at 19.69% of promoter holdings

Sadbhav Engineering Ltd.

15 Feb 2020

8.66

0.46%

Sadbhav Engineering (BUY): Q3 disappoints as tight liquidity impedes execution

Buy: Sadbhav Engineering Ltd.

Target

BOB Capital Markets Ltd.

Sadbhav Engineering's (SADE) Q3FY20 standalone revenue plunged 52% YoY as prolonged monsoons and tight liquidity slowed execution.

Sadbhav Engineering has lost -28.49% in the last 1 Year

Sadbhav Engineering Ltd.

18 Nov 2019

8.66

0.46%

Sadbhav Engineering (2QFY20): Looking ahead. Maintain BUY

Buy: Sadbhav Engineering Ltd.

Target

HDFC Securities

With the sale of majority of the assets in the SIPL platform to IndInfravit the SEL-SIPL Merger provides an opportunity to the company to recalibrate its business model to an asset light structure where it can further monetize its under construction portfolio through the ROFO agreement with IndInfravit, ensuring capital churning for securing new orders. Going forward, SEL is expected to prioritize securing new orders through EPC mode while selectively bidding for new HAM projects, once the NHAI activity gathers pace during 2HFY20. We maintain BUY. Key risks (1) Delay in new order inflows; and (2) Further delay in appointed dates for balance projects. We maintain BUY on SEL with a reduced TP of Rs 241/sh (vs. Rs 269/sh earlier). We value SELs EPC business at 15x FY21E EPS and assign a 20% hold co discount to SIPL stakes market value. Price cut is on account of revision in FY20/21E EPS by 4.9/(6.6)%.

Promoters unpledged 22.98% of shares in last quarter. Total pledge stands at 19.69% of promoter holdings

Sadbhav Engineering Ltd.

22 Oct 2019

8.66

0.46%

SIPL merger in favor of SADE 's shareholders

Buy: Sadbhav Engineering Ltd.

Target

Motilal Oswal

22 October 2019 Infrastructure Directors of Sadbhav Engineering (SADE) has approved the merger of the company and its listed subsidiary Sadbhav Infrastructure Project Limited (SIPL). In consideration of the merger, SADE will issue one equity share for every three SADEs shareholders. As a result of the merger, the promoter stake in SADE will come down from 46.55% to 38.74%. recap, SADE had divested its stake in nine road assets at an EV of INR66.1b, resulting in a debt reduction of INR40.6b at the project level and realization of INR25.5b in lieu of equity invested. Anyway, the investor interest in the listed asset arm has been on a decline, as InvITs are better products compared to listed companies in the road assets business, given the removal of the dividend distribution tax on SPVs and the minimum construction risk. Prima facie, the merger appears value accretive to standalone SADE as the entire benefit of debt reduction in SIPL standalone gets captured in the new merged entity.

Sadbhav Engineering Ltd. is trading below all available SMAs

Is Sadbhav Engineering Ltd. worth buying?

408 Votes:

Buy 78.92%

Sell 12.01%

Hold 9.07%